From rags to riches: The UAE celebrates it's 40th anniversary

I happen to be in the UAE in the week leading up to this nation's milestone birthday. So much has changed here in the last couple of years but this is nothing in comparison to the amazing changes the nation went through since becoming independent a mere generation ago. There is a buzz in the air and a sense of excitement and pride from locals who have lavishly decorated their homes and cars as part of the celebration.



Prior to December 2, 1971, there was no country but a series of Sheikdoms/Emirates which were separated from each other by deserts, their own currencies, rulers and armies. They was even rivalry between some of them notably Abu Dhabi and Dubai. The British were still occupying the region at the time and offered each of the Sheikdom's protection. The Trutial states as they were known would come to an end on that historic date. A visionary Sheikh Zayed, the ruler of the Abu Dhabi Emirate (biggest and wealthiest Emirate) got together with the other 6 neighbouring Sheikhs and convinced them that creating a union and seeking independence from the UK was the way forward. A constitution was drafted and the Sheikhs met again to merge each of their Emirates into the United Arab Emirates.

Life then was still a struggle in many of the Emirates, Abu Dhabi was modestly getting richer due to the exploitation of oil fields in the 1960's. But the rest of this new country including Dubai were still sleepy towns living in a very simple way (no modern comforts of the day, telephones, a/c, decent roads). Dubai soon discovered oil after and so did several of the other Emirates. This brought in dramatic changes which helped fuel Sheikh Zayed's ambitions and vision for the new country. Infrastructure was desperately needed but the UAE went the extra mile and built a network of impressive 1st world standard motorways, ports, airports, desalination plants and power stations. This resulted in growth, increased investment in education, better cooperation and integration between the union and opening up the country to international investors and the expansion of non-oil based industries.

The country continued to develop itself and set the standard in the wider region where infrastructure was poorer, women had practically no rights and certain countries were very inward looking and weary of other nations/parts of the world. A sovereign wealth fund was set up based on the success in Norway and Singapore to invest the current riches into projects and funds that would help the country as oils runs out in the future.

The biggest change no doubt occurred between the late 1980's and 2008. The UAE and especially places like Dubai punched over their weight and saw extremely rapid development, population growth and increased wealth. Gargantuous projects normally seen in places like New York, Tokyo or Paris literally rose out of the sand to create World recognisable landmarks: Palm Jumeirah island, Burj Al Arab hotel, Jebel Ali port, Sheikh Zayed grand mosque and the Burj Khalifa, the world's tallest tower.

The UAE has done tremendously well these last 40 years and has been peaceful amidst an unstable region and has survived many challenges and crises including the recent Arab spring and the credit crunch (albeit at a slower growth rate). The UAE is now seen as the most stable, liberal and open minded country in the Middle East. The late Sheikh Zayed would be proud of the transformation of the nation and it's trajectory into the future. There are challenges though which are to continue to develop the non-oil sectors and reduce the dependency on oil, over reliance of foreign workers (including improving human rights) and creating a knowledge based economy for the  local population that would see the country successfully survive once the last remaining drops of oil are extracted.

Two quotes from Sheikh Zayed bin Sultan al Nahyan (1914-2004):

"We must not rely on oil alone as the main source of our national income. We have to diversify the sources of our revenue and construct economic projects that will ensure a free, stable and dignified life for the people"

"The real asset of any advanced nation is its people, especially the educated ones, and the prosperity and success of the people are measured by the standard of their education."