Aladdin’s Lamp: the secrets of UAE’s success

Abu Dhabi city at sunset. Photo: Freepik.

By: Luis Fernando Heras PortilloTourism, commercial and industrial business developer

The rise of United Arab Emirates (UAE) as one of the most developed nations of the last 30 years seems to be reflected in the technologic tourism infraestructure of Dubai, in the great financial center that Abu Dhabi has become, or in the hundreds of opportunities that the nation offers to people from all over the world, from investors, entrepreneurs and professionals as well as a qualified workforce.

However, their success is not due to an act of magic. In fact, it is the result of working with unity through political will and vision for their future to provide solutions to the needs of its citizens, to face adversity and take advantage of natural resources, to «think big» and become a model of excellence from which Mexico and other nations can learn.

Oasis of Wealth and Prosperity

The history of the United Arab Emirates has its roots in Islamic tradition (which arrived in 630 AD) and trade. Attracted by its valuable geographical position, the region brought together traders from India, China and Europe, particularly the Dutch, Portuguese and British.

While the Europeans sought control of the coasts of the area, the Bedouin – nomadic Arabs – spread out into the desert, making Abu Dhabi their center and most important city.

The migration to the Arabian desert was the key to the development of UAE. Photo: Danielle Barnes | Unsplash

In the 19th century, after a peace agreement with the UK, the tribes of the country became The Trucial States. They agreed not to cede territories or compromise with any other government than that of the British. In return, they promised to protect their shores from all agressions.

Between the 19th and early 20th centuries, the economy of the United Arab Emirates began to prosper, first with the pearl industry and later with oil, when the first geological studies were carried out by oil companies in 1930’s.

In 1962, about 30 years later, the first cargo of crude was exported from the Abu Dhabi. In 1966, under the command of Sheikh Zayed bin Sultan Al Nahyan, the economy advanced in constant progress. The oil revenues were invested first in infrastructure such as schools, housing, hospitals and roads throughout Abu Dhabi. When the Emirate of Dubai began to export oil in 1969, the ruler Sheikh Rashid bin Saeed Al Maktoum, focused the proceeds on developing programs aimed at improving the quality of life of their citizens.

Oil Rig at Port Khaled, Sharjah. Photo: Wikimedia Commons.

In 1968, with the withdrawal of the British from the Arabian Gulf, Sheikh Zayed proposed to strengthen ties between the Emirates. Thus, an agreement was reached between the rulers of six of the Emirates (Abu Dhabi, Dubai, Sharjah, Umm al-Quwain, Fujairah and Ajman). On December 2, 1971 the nation bacame officialy United Arab Emirates. The seventh emirate, Ra’s al-Khaimah, joined the new nation the following year.

Young Emporium

Although the United Arab Emirates is preceded by centuries of history and tradition, we could say that it is a relatively young emporium, developed through political agreements focussed on the well-being of its citizens.

Emirates have advanced towards the 21st century, forging an identity that combines their valuable heritage and tradition with a new structure of economic, trade, investment, infrastructure, communication, technology and social development.

Sheikh Zayed Mosque in Abu Dhabi, built in honor of the first president of the United Arab Emirates, Zayed ibn Sultan Al Nahayan. Photo: Freepik

UAE is a relatively small country, both in size and population. According to data from the World Bank, in 2020 they had with a population of 9.89 million habitants. And about 90.35% are «expatriate» immigrants, according to the latest data published by the UN. Those expatriate are, mostly, the workforce, technicians and professionals who come from other countries to be part of the economic, social and political development of the United Arab Emirates.

As mentioned above, among UAE’s strengths – besides their vision and intelligence – are oil and natural gas. In fact, they are considered the seventh world leaders in terms of the largest natural reserves of both resources.

Vision to success: The UAE’s Big Three Secrets

Politically, with the unity achieved 50 years ago, a philosophy of great vision was forged. Their sheiks have reiterated this in a very easy-to-understand explanation: they managed to dominate the desert and «domesticate» the sea. This, perhaps, is similar to what happens in the state of Sonora, in Mexico, especially on the coasts of San Luis Río Colorado, Puerto Peñasco, Caborca, Pitiquito, Bahía de Kino and more. We have sand and salt water, but we have not managed to «tame» our resources.

Aerial view of Puerto Peñasco, a rich region full of opportunities in Sonora, México

By reconverting the oil and natural gas economy to develop infrastructure, healthcare and education, the Emiratis set a great example of solidarity with their citizens under the principle of «wealth creates more wealth.» Money calls for more money, but a healthy economy has a satisfied people above everything.

Therefore, the first big secret was to invest with vision the surplus oil and gas inside and outside the United Arab Emirates. The first big project was real estate. They began to build large skyscrapers under three priorities: tourist developments, housing apartments (for its citizens and for those who came to the country to work) and large financial institutions – large buildings for banks, investment companies, and international projects.

Modern buildings en Abu Dhabi. Photo: Alan64 vía iStock.

With big buildings and roads on ther main cities, the second secret of the Young Emporium was the great financial projects: to support and expand investment funds around the world to develop projects in Abu Dhabi and Dubai. Then, invest in projects in other countries during the first ten years. As a result, the ‘boomerang’ of profits returned to the United Arab Emirates with good results from their investments and, of course, good international allies.

Freeways in Burj Park, Dubai. Photo: Freepik.

Finally, their third great secret is that they not only bet on the financial and real estate sector, but also diversified their economy through tourism, technology, aviation, renewable energy and food, being the last one a mayor opportunity for Mexico to present interesting projects of processed products.

Ready-to-go guacamole, one of the most popular products of México around the world. Photo: Ambertec International Business.

UAE’s efficient wealth formula shows that the country will continue to invest in new real estate, financial, food self-sufficiency, food processing projects and new technologies around the world. There is great interest in everything that they believe will benefit the country.

This is how they demostrate that the future can be built with ideas, projects, strategy and political will. The vision that the United Arab Emirates, particularly Abu Dhabi and Dubai, have had is impressive. It is a lesson that should be learned by Mexicans and the rest of the world. A great example of how to become a new world power.