Speech by H.E. Sheikha Lubna Al Qasimi
U.A.E. Minister of Foreign Trade
U.S.-U.A.E. Business Council Luncheon
The Vu Restaurant, Jumeirah Emirates Towers Hotel, Dubai
February 25, 2009, 12:30pm
Topic: State of the U.A.E. economy and opportunities for strengthening the UAE-US Partnership
Your Excellencies,
Distinguished Guests,
Ladies and Gentlemen,
A pleasant afternoon to you all, this is indeed an excellent setting for all of us to appreciate how far the UAE and the US have gone as partners and as friends, and how much we can still achieve together. It is a particularly opportune time for us to explore the future of our relations, as the US moves forward under a new leadership towards fresher and brighter directions, and as the UAE continues to prove its resilience amidst these challenging times.
UAE Economy Overview:
In 2008, our GDP rose by nearly 13.9 per cent to surpass the AED 800-billion-mark for the first time. Although we do not expect a repeat of this figure in 2009 given present regional and global economic conditions, we do anticipate enough growth to sustain our development goals. The global economic down turn has affected most countries in the world and the UAE is not immune from it, this reaffirms that the UAE is a country that is not isolated from the rest of the world and is deeply integrated in the global economy. Several initiatives have been made to face our economic challenges.
Facing Challenges:
Our Central Bank:
- Released USD 32.67 billion of funding to our banks since the last quarter of 2008 to ensure liquidity across our financial sector.
- All deposits and savings were guaranteed as well.
- The federal budget for this year is 24 per cent higher than that of 2008’s to keep our infrastructural initiatives on track.
- In addition, on the local government’s level, different emirates made contributions by embarking on different stimulus plans. The government of Abu Dhabi injected additional capital off $4.4 Billion to support its banks. Recently the government of Dubai announced a $20 billion bond program to fund its various financial commitments.
Message to US-UAE Business Council:
May I take this opportunity, to commend the U.S.-U.A.E. Business Council for providing an ideal venue for us to discuss how our alliance can help steer the country and the region towards further growth, and assist the world towards a much-needed economic recovery. Since its establishment in May of 2007, the Council has been instrumental in advancing commercial ties between our two nations. This gathering is an affirmation of the fruits of your efforts. And of course, it’s very motivating to see industry leaders and decision makers gathered together to share their ideas and views on how we should proceed towards our shared vision of sustainable growth.
Ladies and Gentlemen,
The US is one of our country’s earliest and closest international partners. Just shortly after our country was established in 1971, the US became the third country to establish formal diplomatic ties between our two states. This early affirmation of support has always been treasured by the UAE and has served as the foundation for our harmonious collaboration in various social, cultural and economic activities.
Today, the UAE has become the second home to more than 30,000 Americans and the base for over 750 American-owned businesses. We continue to maintain very productive commercial and trade relations; in fact, the Emirates bought more than USD 14 billion of American exports in 2008, once again making us the largest purchaser of US goods in the Arab World. The US in turn imported more than USD 1 billion of our products last year, increasing our total bilateral trade by around 32 per cent to more than USD 15 billion. US exports to our country have expanded four-fold since 2000, and this will continue to rise as we explore partnerships in key areas such as alternative energy, defense, electronics, healthcare and education. Just last January, we signed the Agreement for Cooperation Concerning Peaceful Uses of Nuclear Energy with America which the business council has been active in advocating. We hope that President Obama’s administration will soon welcome us as the US’ latest 123 Agreement partner.
UAE Trade Office:
In the past, several government and non government institutions based both in the US and the UAE have shown great commitment in strengthening the bilateral relationship between both countries. The UAE Embassy in Washington DC continues to serve our nation in various means and as I had mentioned earlier, the US UAE Business Council is another organization that has added tremendous value to the bilateral relationship. I am proud to announce that the Ministry of
Foreign Trade has appointed a new Commercial Attaché who’s first objective is to establish a new UAE Trade Office in Washington DC. The Office will serve as an additional mission that will embark on solidifying the commercial and trade relationship between the US and UAE. The Trade Office will work hand in hand with current existing institutions to promote UAE business in the US, it will also provide US companies with advice on how to go about doing business in the UAE, this includes explaining and educating US companies with regards to setting up a business and the different models or options available to foreign entities.
Ladies and Gentlemen,
The UAE is committed to remain an excellent destination for America’s businesses and investments. We continue to remove barriers to trade and adopt reforms that promote efficiency, transparency, and good governance. Our aggressive diversification efforts are also worth noting, as they have significantly expanded opportunities into non-oil sectors. But most of all, it is our strong economy which makes us a preferred partner for progress.
Ladies and Gentlemen,
Aristotle is said to have commented that “Friendship is essentially a partnership.” Indeed, since affirming its friendship with our country during its formative years, the US has also been our constant partner for growth and progress. I recently spoke to the World Affairs
Councils of America about how we should focus on the opportunities offered by today’s financial crisis to the perceptive and the prepared. I echo this call and urge all of us to team up in contributing to the revival of the global economy. I have faith in the resilience of America and the vision of the UAE; there are no limits to what we can achieve, as partners and as friends.
I would like to thank the U.S.-U.A.E. Business Council for inviting me to affirm the bond between our nations. I would also like to commend you all, for your contributions to this valuable partnership. I wish you all success in your present and future endeavors.
Thank you and please enjoy the rest of today’s activities.
