Special Report: UAE - Federal support boosts confidence

The freedom of the seven emirates that make up the UAE to determine their own economic development is enshrined in the federation’s 1971 constitution and has been one of the country’s strengths.

This devolved power structure has resulted in welcome economic diversity among the emirates. Sharjah, for example, has built up a significant small and medium-sized business sector, which now contributes 80 per cent of its overall gross domestic product (GDP). This month, the emirate’s ruler announced plans to create seven more special zones to encourage further industrial growth.

Dubai, by contrast, has developed a reputation as a finance centre for the UAE, because of its historic role as a trading hub between the Gulf and countries such as Iran and India.

But the country’s constitution also makes it clear that the buck stops with Abu Dhabi when it comes to decision-making. While the emirates’ respective rulers all have their say via the country’s Supreme Council, it is Abu Dhabi’s Emir Sheikh Khalifa bin Zayed al-Nahyan, president of the UAE, who has the greatest power.

Sheikh Khalifa’s official visit to Dubai on 14 April was both a public display of support for Dubai and a reminder that like all the emirates, it does not operate in isolation, as outsiders may have thought during the economic boom of recent years.

List of Special Report stories:

• Emirates gaining strength through unity

• Investors return to the emirates

• Lack of power holds back industry in the emirates

• A boost to small businesses in the emirates

• Emirates’ carriers beat the global downturn

• Commentary: Emirates have to build confidence