The Dubai School of Government, a research and teaching institution focusing on public policy in the Arab world, welcomed Danny Sebright, President of the U.S.-U.A.E. Business Council, as a guest lecturer on Wednesday in Dubai, United Arab Emirates. Mr. Sebright’s lecture entitled, “The U.S.-U.A.E. Trade and Commercial Relationship: A Positive Diplomatic Trend”, was attended by government officials from the United States and U.A.E., senior business executives, academics, students, and journalists. A live webcast of the lecture broadcast Mr. Sebright’s remarks to interested viewers around the world.
In his remarks, Sebright stressed the stability and durability of the overall U.S.-U.A.E. diplomatic relationship and presented a case for the growth potential of the U.S.-U.A.E. commercial relationship moving forward. To support his argument, Sebright cited recent bilateral trade statistics and supportive testimonies of government officials from both countries, speaking to the importance and strength of the relationship.
Throughout the lecture, Sebright highlighted the U.A.E. as a politically stable destination for American commercial investment and trade. Furthermore, Sebright presented the seven economic sectors of focus outlined in the U.A.E. Vision 2021 and Abu Dhabi’s 2030 Economic Development Plans as dynamic opportunities for U.S.-U.A.E. commercial partnership. Under these plans, the U.A.E. aims to develop key global economic sectors— with the help of the U.S. and other nations — including: healthcare, tourism, education, infrastructure & green build, media, civilian nuclear and renewable energy, and commercial aerospace & defense.
Following Sebright’s remarks, the floor was opened for a question and answer session. During Q&A, Sebright and members of the audience discussed a variety of topics including regional geopolitics, trade and foreign direct investment, American investment in U.A.E. exports, the U.S. election cycle, and policy reform.
Mr. Sebright, based in Washington, D.C., was in the U.A.E. for the Abu Dhabi Grand Prix and the Dubai Airshow.
For your reference, Mr. Sebright full remarks can be found below.
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“The U.S.-U.A.E. Trade & Commercial Relationship, a Positive Diplomatic Trend”
Remarks by Danny Sebright, President of the U.S.-U.A.E. Business Council
Dubai School of Government
16 November 2011
As prepared for delivery
I am grateful to the leadership and faculty of the Dubai School of Government for the kind invitation to speak with you this evening.
As a proud alumnus of the Harvard Kennedy School of Government, a driving force behind the success of DSG, it gives me great pleasure to visit your dynamic institution.
I am here tonight in my capacity as the President of the U.S.-U.A.E. Business Council, a bilateral trade organization based in Washington, D.C. committed the advancement of trade and commerce between the United States and the United Arab Emirates.
I would like to take the time I have this evening to talk with you about the vital role commerce plays in the development of today’s global political economy and provide you with a sense of the broader trends in the U.S.-U.A.E. commercial and diplomatic relationship to support the argument.
Let me begin by saying that in today’s changing international political landscape, trade and commerce between nations drives effective diplomacy and ambitious economic development.
In light of the global financial crisis, many countries around the world are developing at a rapid pace and international commerce is a key element driving sustainable economic development in these nations.
Further, countries that open their doors to trade and foreign direct investment benefit from the infusion of new business coming into and out of their borders; effectively creating jobs locally and boosting economic welfare globally.
In the United States, for example, international trade and commerce is a key policy priority of the Administration because of its potential to stimulate the economy and create jobs.
Last year, President Barack Obama issued an Executive Order establishing the National Export Initiative, or NEI, an ambitious export promotion program.
In the Order, Obama tasked the Department of Commerce’s International Trade Administration with developing and executing the national export promotion initiative in an effort to double U.S. exports by January 1, 2015.
In the text of the Executive Order, President Obama explicitly linked increased export performance to American job creation and argued that an increase in the size of the global marketplace for American goods and services would build the need for more workers domestically, effectively creating and sustaining American jobs.
In fact, according to recent figures from the International Trade Administration, U.S. exports grew 17% in 2010 and supported over 9 million American jobs.
Moreover, this 17% growth in exports represented nearly half of the total growth of the U.S. economy last year and indicates the increasingly significant role trade plays in the welfare of national economies today.
President Obama’s NEI is governed by an “Export Promotion Cabinet”, comprised of the highest U.S. government officials from the Executive Branch, illustrating the high-level support infrastructure of the initiative.
Additionally, the recent signing of Free Trade Agreements with Colombia, Panama, and South Korea and the announced potential for a U.S.-Gulf Cooperation Council (GCC) Trade & Investment Framework Agreement, or TIFA, illustrates America’s world-wide commitment to this initiative.
Moreover, the TIFA supports the Obama Administration’s focus on the Middle East North Africa (MENA) region as a potential hotspot for increased trade and investment.
During an interview with CNBC Europe at the World Economic Forum in Jordan last month, Francisco Sánchez, U.S. Under Secretary of Commerce for International Trade, underscored America’s commitment to “helping spur entrepreneurship, investment and trade with and within the [MENA] region.”
In the interview, Under Secretary Sánchez noted the growing and youthful population in the MENA region and cited transparency and regulatory cooperation as underdeveloped elements key to the future success of regional trade with the U.S.
An example of a transparent nation with a clear vision and dynamic economic development strategy in the vibrant MENA region is the United Arab Emirates.
The U.A.E. is well on its way to providing a clear and open business climate; actively working to reform commercial regulations and foreign ownership laws in an effort to open the doors further to international commerce.
Over the next twenty years, the U.A.E. plans to diversify its economy away from a dependence on oil through the cultivation of global resources and know-how, local talent development, and a keen desire to establish a full-service commercial hub in the Middle East.
The strong and cohesive leadership of the U.A.E. is dedicated to the economic well-being of Emiratis and is actively exploring international best practices to establish the most efficient and beneficial local economy.
A key partner for the U.A.E. in the realization of these economic development goals is the United States of America.
The U.S. and the U.A.E. currently share both a long-established defense and security relationship and, more recently, a flourishing commercial partnership.
The strategic military alliance between the two countries dates back to the U.A.E.’s founding and has effectively built the strong diplomatic rapport that exists between the nations today.
Now, let me briefly present some key information about the strategic partnership to provide some context to the development of the U.S.-U.A.E. relationship over the past forty years.
Presently, the militaries of the two countries work together with other key allies to provide stability and security in the Arabian Gulf and broader MENA region.
In the Gulf, the U.A.E. is home to the largest U.S. military port-of-call outside of America at Jebel Ali, right here in Dubai.
In the broader MENA region, the U.A.E. is working with American and international forces to deliver security and humanitarian services to people around the region in areas of instability and conflict.
In fact, in the early 2000s, the U.A.E. became the first Arab nation to send troops to join American and NATO forces on the ground in Afghanistan— where they continue to serve today— to carry out the ongoing international humanitarian and security mission there.
This year, the U.A.E. armed forces were the first Arab military to contribute troops and aircraft to the NATO No-Fly Zone in Libya, working with U.S. and NATO pilots to police the volatile Libyan skies.
Furthermore, the U.S. and the U.A.E. enjoy significant intelligence and homeland security cooperation between the armed forces and intelligence agencies of both countries; monitoring the Gulf to combat money laundering, terrorist financing, and nuclear proliferation.
As key allies, the U.S. and the U.A.E. continue to train side-by-side in an effort to develop premiere military capabilities and achieve mutual national security objectives.
Ultimately, this robust strategic partnership, built on mutual trust and respect, has laid the foundation for the cultivation of a successful U.S.-U.A.E. business relationship.
In light of the recent political turmoil in surrounding countries, the U.S. is keen to strengthen commercial ties with the politically stable U.A.E. in line with the country’s Vision 2021 and Abu Dhabi’s 2030 economic development plans.
Under these plans, the U.A.E. aims to develop key global economic sectors— with the help of the U.S. and other nations — including: healthcare, tourism, education, infrastructure & green build, media, civilian nuclear and renewable energy, and commercial aerospace & defense.
Each of these sectors presents a dynamic opportunity for American investment and partnership.
Economically, the U.S. boasts a rare trade surplus with the U.A.E., while the U.A.E. stands as the largest export destination for American goods in the entire Middle East region and 21st globally, according to 2010 U.S. international trade statistics.
Conversely, the U.S. is among the top four trading partners to the U.A.E.; along with India, China, and Japan.
Key sectors of trade between the two countries last year included: transportation equipment, computer technology, machinery, and chemicals.
Consistent with past years, every state in the U.S. as well as the District of Columbia, Puerto Rico, and the Virgin Islands exported goods to the U.A.E in 2010.
Furthermore, the U.S. and the U.A.E. shared a $12.8 Billion trade volume last year, a number that is due to increase if economic trends continue as they have for the first part of 2011.
In the first five months of this year, the U.S.-U.A.E. trade volume reached 18.9 billion dirhams — roughly $5.15 billion dollars — according to official trade data released by the U.A.E. Ministry of Foreign Trade.
According to the Ministry, U.S. trade with the U.A.E. has grown rapidly over the past ten years, amounting to more than $68 billion at a growth rate of 350% over that time.
Foreign direct investment also plays an important role in the U.S.-U.A.E. relationship; complementing trade and driving commerce.
The U.A.E. has invested billions of dollars in the U.S. in cities such as Las Vegas and Los Angeles and the U.S. foreign direct investment in the U.A.E. is significant.
There is also heavy support from the governments of both countries for the exploration of commercial partnerships and investment opportunities between U.S. and U.A.E. entities.
Ambassador Michael Corbin, who was sworn in as U.S. Ambassador to the U.A.E. this summer, has cited commerce as a chief driver of the U.S.-U.A.E. relationship moving forward.
Moreover, Ambassador Corbin has expressed his open-door policy toward business repeatedly to public and private sector stakeholders, encouraging American firms to explore opportunities for investment and partnership in the Emirates.
Now please allow me the opportunity to provide you with some background information on how my organization fits into the U.S.-U.A.E. dynamic.
As I mentioned earlier, the U.S.-U.A.E. Business Council is the premier bilateral advocacy organization promoting the trade and commercial relationship between the U.S. and the U.A.E.
The Council operates at the nexus of business and policy to provide a voice and a platform for companies from the U.S. and the U.A.E. to communicate effectively with key policy-makers in both countries.
Moreover, the Council leverages opportunities such as trade missions and events with high-level access to public and private sector decision-makers to promote the exchange of ideas and commerce between the United States and the United Arab Emirates.
In the past year, the Business Council has led five successful trade missions in the civilian nuclear, rail & infrastructure, healthcare & pharmaceuticals, and aerospace & defense sectors and supported delegations from the U.A.E. in the U.S. for trade shows such as the Offshore Technology Conference in Houston, Texas and the International Consumer Electronics Show in Las Vegas.
In the U.S., we are working actively to broaden the understanding of Americans outside of Washington, D.C. with policy events on the sidelines of prominent industry conferences and trade shows and outreach in communities across the country.
That concludes my brief plug about the Council, I hope it has provided some context to how we work to facilitate discussion and push the policy agenda to support the advancement of the U.S.-U.A.E. commercial relationship.
Let me close my remarks by emphasizing that awareness among public and private sector stakeholders in the U.S. and the U.A.E. is growing and key decision-makers are increasingly recognizing the importance and durability of the commercial relationship.
Through policy reform and advocacy, these prominent government officials and policy-makers are encouraging American firms and institutions to provide leadership development, training, and education to future generations of Emirati leaders as the U.A.E. works to build a sustainable local workforce.
Indeed, the story of the overall U.S.-U.A.E. relationship is a positive one shaped by a robust strategic alliance and increased bilateral trade and commerce.
Furthermore, the multi-dimensional and robust U.S.-U.A.E. relationship is built on mutual respect and has excellent growth potential moving forward.
At the 30,000 foot level, the U.A.E. presents a stellar business case for the global private sector to establish and expand a secure MENA presence and benefit from a young, ambitious, and growing consumer-base in the region.
Thank you.
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About the Dubai School of Government
The Dubai School of Government (DSG) is a research and teaching institution focusing on public policy in the Arab world. Established in 2005 under the patronage of H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, in cooperation with the Harvard Kennedy School, DSG aims to promote good governance through enhancing the region’s capacity for effective public policy. Toward this goal, the Dubai School of Government also collaborates with regional and global institutions in delivering its research and training programs. In addition, the School organizes policy forums and international conferences to facilitate the exchange of ideas and promote critical debate on public policy in the Arab world.
Please find the Dubai School of Government press release HERE
