SEMINAR

UAE RELATIONS WITH INDIA

Submitted by :
Akshay Gogia
AUD 2502
MBA Urban & Real Estate
Overview of United Arab Emirates:
The United Arab Emirates, established in 1971, is a federation of seven Emirates namely Abu
Dhabi, Ajman, Dubai, Fujairah, Sharjah, Ras Al Khaimah and Umm Al Quwain. Apart from
being a member of IMF, OPEC, WTO, etc; UAE is a part of GCC(Gulf Cooperation Council)
whose other members are Saudi Arabia, Oman, Qatar, Bahrain & Kuwait. UAE is primarily
known as a petroleum-producing economy which has achieved tremendous social & economic
development in the past two decades. UAE has excelled as one of Middle Easts most dynamic
countries.
Overview of the United states of America :
The United states of America constitutes 50 states, the capital of the country being Washington
DC. Its the worlds largest economy with democracy and structured federal policies. The
country adjoins to both north and south by Canada and Mexico. Being the largest world economy
, It acts as a world leader leading light for the economy globally. The panorama of USA economy
signifies a positive sign growth.

UAE TRADE WITH USA :

Commencing with the trade between the two countries, both the countries are in the top charts
for export, import and not only trade it also highlights towards a strong relation in investment
sector. According to a report conducted in the year 2012, UAE was the biggest exporter in the
Middle east. United states is also one of the main traders globally. The trade volume between two
countries rose to $24.5 billion, being the highest trade volume. In comparison with the imports
among the two countries it remained constant approximately $2billion. The USA goods exports
to UAE constitutes mainly the following USA states : Texas, New York , California ,Florida. In
categorizing UAEs import/export partners , USA stands on the 3 rd position importing products
such as machinery, computer & electronic products, primary metal manufacturing, chemicals ,
transport equipments. These are the main products trading between the two countries. The
relation between the two can be named as the long term economic partners. Possessing one of
the most open and innovative economies

the UAE is a dependable and comprehensive

commercial partner alongside the United States. The UAE is the United States solitary
biggest export marketplace in the Middle East, alongside extra than $22
billion in exports in 2012 the fourth consecutive year the UAE has grasped
a distinction. US firms have frolicked main acts in the progress of UAE power
resources, that embody concerning 10 percent of oil reserves worldwide. The
UAE is the only oil producer in the Inlet to uphold private-sector participation
in the oil and gas sector. However , approximately about 1000 US firms have
a presence in the UAE, from Bechtel and Exxon Mobil to Starbucks and Cold
Stone Creamery.
UAE made several investments which was a dependable and acted as an
long-term driver of growth for the US economy inoculating capital, bringing
an increase in the marketplace, setting jobs and giving to public prosperity.
The countries therefore depict a strong long term trade and investment
relationship. Not only in trade and investment UAE and USA also pursues an
expanding relationship in the social and cultural sectors. Several USA
institutions encompassing New York university , Boston University are
associated with UAE for providing education making the relationship between

the two more stronger. Focusing

on the healthcare sector the Cleveland

Clinic and the Mayo Clinic are providing health care services and facilities in
the UAE. One more aspect makes the relationship a long one as UAE
provided $100 million to the United States in the days of occurrence
Hurricane Katrina. U.A.E. mentioned its willingness to support and impose
new UN commercial sanctions opposing Iran.

Economic and Trade Relations

It can be very well said that even after being one of the most innovative and open
economy, UAE is reliable and substantial economic partner with the United States. The
UAE is the United States only largest export market. As few states mentioned above,
even states like as the District of Columbia, Puerto Rico, and the Virgin
Islands has export concerns with UAE. Along with this, UAE also exports
goods to USA such as petroleum products which have shown an increase in
the recent years. Certain UAE companies such as Exxon mobile , Occidental
are connected with the exports between the two countries. These firms are
planning to have an expanding relationship with UAE. The pegging of UAE Dirham with USA
Dollar proves another aspect of the economic ties. Moreover UAE has been a significant
investment partner for over 40 years . It can be concluded that UAE has contributed greatly to
the US economy by surrendering liquidity to the USA capital markets , job security and
economic growth. In earlier years Abu Dhabi government stated the investment principles of
government owned funds. After stating the guidelines 23 countries committed to operate their
funds one of them being United States of America. Strengthening their relationship both the
countries USA and UAE initiated its first economic policy which aimed at getting stronger in
commercial, trade and economic relation among the two countries. The major boom to the
relationship lays one more factor of not being involved in WTO for any kind of dispute and
disagreement between the two countries. Also, the business council concludes an commitment to
expanding business opportunities Example-Boeing: The UAE among the globe is the largest
customer for Boeing commercial passenger aircrafts. Customers inclusive of Emirates Airlines,
the global largest operator of 777 aircraft and the single airline to operate every Boeing model

type. In the year 2010 the government of Abu Dhabi investments entered into an agreement of
investing $20 million in an US airline company.
Security Relations
The UAE and the United States stand closely to have a strong security and stability in the Gulf.
US homeland security is directly connected and tied to UAE. At the time of desert storm in the
USA, UAE took the first step in order to support the United States. The only Arab country bring
participating with the united States in five alliances or federations - Afghanistan, Libya, Somalia,
Bosnia-Kosovo and the First Gulf War. UAE took special steps supporting USA and providing
with every security steps and stability possible. Both the countries are committed towards each
other making their relationship way more strong and having no disputes. Americans in the UAE
according to the Census report , more than 30,000 Americans are residing in the UAE.
Concerning with the flight status 75 non-stop flights takes place from different USA cities. The
UAE is a major defense supplier to the united states . the UAE also provided US navy with navy
fleet operations and performing various exercises with US forces.

Challenges faced by USA and UAE relations:

1. The concerns in some areas of the investment sector in the UAE, mainly funds related
with government or sovereign wealth funds. The challenge with the sovereign funds had
led to a controversy in UAE in the year 2006. The UAE investments proved to be an
important source for the USA after oil prices boomed up in the early 1970s. the
controversy has led to increased transparency in the procedure of how these funds are
being carried out in operations and the outside pressure faced by UAE. These government
related funds have been combined with the Santiago principles for increasing outward
investments from the UAE. These steps were taken by the Abu Dhabi government for
increasing transparency in the investments.
2. Both the countries faces challenge in the economic and trade relations inclusive of the
factor of labor market in UAE. As labor concerns are important in any country its been
another controversy of how the foreign workers are treated such as janitors,

housekeepers. These issues have even been popular in the press. Several reforms have
been issued addressing the right of workers. The country goes in a systematic way of
handling the labor of people working without passports, staying illegally. Foreign
workers have faced a lot of layoffs regarding their labor employment . therefore this a
major concern for the UAE and USA relationship as labors facing such challenges in
UAE might shift back to their home country resulting weakening the relations between
two countries.
3. Maintaining these strong relationship also poses as a major challenge in front of these
two countries. Hence, both the countries must maintain the ties in a positive way leading
to growth between both of the countries economically. The security relations also is a
major challenge as both the countries must always stand as a protection and support for
each other.
After analyzing various demeanors, examples and situations of both the countries USA and
UAE, there has been evidences and indications of strong relationship between them and their
constant support towards each other. Both the economies well dependant on each other. USA and
UAE sharing security concerns and maintaining stability in the gulf region as well as the USA
economy.