Clear vision backed by accurate execution drives UAE growth

In addition to leading Dubai as a world-renowned financial, trade and tourism hub, His Highness Sheikh Mohammad bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, is also one of the main people driving the growth of the UAE. A day after he became the Ruler of Dubai on January 4, 2006, the members of the Supreme Council elected Sheikh Mohammed as the UAE Vice-President. Later he was also named Prime Minister. Since then, he began to head the UAE Cabinet, which in the middle of the global crisis, has maintained its tranquil composure and continue to make great strides in pursuit of a vision the country has ambitiously carved. "Led by my brother, President His Highness Shaikh Khalifa bin Zayed Al Nahyan, we in the UAE are carrying on the march started by the late Shaikh Zayed bin Sultan Al Nahyan and our father, the late Shaikh Rashid bin Saeed Al Maktoum, since the early 1970s, when they launched the first stage of the federation and started the blessed march," Sheikh Mohammed said during an investment conference. Record budget Sheikh Mohammed, a graduate of Britain's Sandhurst military academy, exuded confidence in the country when he announced the largest budget in the history of the UAE last year. That was the year when most economies receded and almost everyone paused on their capital expenditure plans due to the global crisis. The UAE Cabinet approved a federal budget of Dh42.2 billion for 2009, a 21 per cent increase from the 2008 budget. The largest budget in the UAE history has come to reflect the government's efforts to enhance the country's economic growth and keep it at elevated levels. Dr Hanif Hassan, Minister of Health, said: "The government had high-level, competitive and distinguished performance over the past years, especially in service sectors such as education. The government managed to draw up an unprecedented strategic plan and work indicators, which are the first of its kind in Gulf and aimed at improving all services provided in country, especially the services provided to UAE nationals. In addition, the government completed giant and distinguished projects by virtue of the vision of Sheikh Mohammed. Undoubtedly, the government has big challenges and projects in the future. There is a big focus on the support of service sectors, especially education and health, to make them reach best international practices." Unsurprisingly, the counter-cyclical measures pursued by the UAE were hailed by the International Monetary Fund (IMF). Dr Masood Ahmed, IMF's Director for Middle East and Central Asia Department told Emirates Business , the country continues to grow thanks to its recent policy responses such as the boost in public infrastructure spending, liquidity injection and government guarantees. "Due to counter-cyclical measures, non-oil GDP went down to only three per cent this year from 6.5 per cent in 2008," he said. "We have seen oil GDP drop by five to 5.5 per cent this year from a six per cent growth in 2008 due to the decline in oil prices and volume. But we expect oil GDP to grow to five per cent next year." The UAE economy has always been healthy, allowing surpluses in federal budget to exceed 10 per cent of GDP from 2004-2008 and since the 2005 federal budget, the budgetary allocation has increased by almost 100 per cent. The UAE Government has wisely managed its allocations to end up with a balanced federal budget and the largest in its history. Looking at long-term growth, the future of the younger generation and the generations to come was secured by the establishment of the Emirates Investment Authority (EIA), the first federal sovereign wealth fund for all seven emirates and the sole entity responsible for investing surplus funds of the UAE Government. The objective of the EIA is to achieve attractive financial returns and diversify the government's asset exposure by cultivating sovereign funding arrangements in tandem with first-class investment opportunities in the public and private markets of the GCC and overseas. Investment in people On the back of an aggressive monetary policy, the government has made sure that there is excellence in every sector. And Sheikh Mohammed knew it all starts from developing the core of success – people. "My chief concern is young leaders and investment in humanity. As you may recall, it was investment in man, not in places where I began – as a man can work even in a tent, but the place, no matter how big or small, remains merely a place," Sheikh Mohammed said in a Women's Leadership Seminar in Dubai. To be on a par to the highest international standards, the UAE federal government created three new ministries and gave different ministries financial and administrative independence among others. "Today, ministers leave their offices at the various ministries, and talk to their employees with truthfulness and transparency. You can now hear an employee saying, 'the minister came to me, sat with me and talked