UAE-US RELATIONS: Areas of Bilateral Cooperation

THE UNITED ARAB EMIRATES AND THE UNITED STATES

Key Areas of Bilateral Cooperation

Located at a critical strategic position bordering the Arabian Gulf, the Indian Ocean and the Strait of Hormuz, and less than 100 miles from Iran, the United Arab Emirates (UAE) is an important and reliable ally of the United States.

Economic and Trade Relations

With one of the most open and innovative economies in the world, the UAE is a dependable and substantial economic partner with the United States.

• The US Commerce Department named the UAE as the United States’ single largest export market in the Middle East, with nearly $12 billion in exports in 2006.
• 750 US firms have an on-the-ground and expanding presence in the UAE.
• The UAE pegs its currency, the dirham, to the dollar.
• UAE institutions have been consistent and responsible investors in US capital markets for more than 30 years. The UAE has generated most oil revenues from sales to Asia, while reinvesting a significant percentage in US markets.
• In 2006, UA E investment firms directly invested $3.5 billion in US companies.
• Transactions in 2007 include a $7.5 billion stake in Citigroup by the Abu Dhabi Investment Authority (ADIA); Borse Dubai, the government-controlled exchange, agreed to take a 19.9 percent stake in the Nasdaq and to buy Nasdaq’s 28 percent stake in the London Stock Exchange ; Mubadala Development Company took a 7.5 percent stake in the Carlyle Group and an 8 percent stake in Advanced Micro Devices; and Istithmar, a Dubai fund, bought Barneys New York.
• Trade and Investment Framework Agreement Plus talks are underway to capture progress from UAE-US Free Trade Agreement (FTA) discussions. FTA is on hold until Congress reauthorizes fast track authority.
• Commercial Passenger Aircraft : Emirates Airlines is the biggest customer for the Boeing 777, with 98 aircraft in service or on order. A 2005 order for 42 aircraft is valued at $9.7 billion, and a 2006 order for 10 Boeing 747-8 Freighters includes an option for 10 more. In addition, Etihad Airlines has purchased 5 Boeing 777-300ER Aircraft, valued at $1 billion.
• Oil and Gas Sector : The UAE is the only Gulf State to allow private-sector participation in oil and gas. ExxonMobil is a strategic partner with Abu Dhabi National Oil Company (ADNOC).
• Bechtel has various projects in the gas sector, including a recent $1.5 billion contract for facility expansion.
• Foster Wheeler is a key contractor in the UAE gas sector, recently awarded a contract for management of a major gas complex expansion.
• Occidental Petroleum owns 24.5 percent of the Dolphin Energy project.

Security Relations

The two countries share a common resolve to preserve security and stability in the region. US homeland security is tied directly to the UAE’s role as a producer of security in the Gulf.

• The UAE was the first country to support the United States at the advent of Desert Storm.
• A formal Defense Cooperation Agreement has been in place since 1994.

The UAE provides ongoing and essential support for US forces in the region:

• Hosting more than 2,000 US military personnel.
• Providing critical logistics support for US Navy fleet operations; more than 600 US Naval vessels visited UAE ports in 2006 with a 100 percent safety record—making UAE ports the most visited foreign ports for US ships.
• Supporting US Air Force operations through critical logistics and facilities at Al Dhafra Air Base.
• Supporting US and NATO missions in Afghanistan.
• Deploying UAE military forces and/or providing UAE assistance to Operation Desert Storm/Gulf War, Operation Iraqi Freedom, as well as UN Operations in Somalia and Kosovo.
• Hosting the Joint Air Warfare Center and joint training exercises with US forces.

The UAE’s contributions to the fight against terrorism include:

• Significant intelligence cooperation with various US government agencies.
• The UAE was the first country in the Middle East to join the US Container Security Initiative, in which US customs officers inspect US-bound cargos before they depart UAE ports.
• Ongoing joint task forces to combat money laundering, terrorist financing, and nuclear proliferation.
• New export control laws to prevent the transshipment of sensitive goods and technologies.
• The UAE is a signatory to the Proliferation Security Initiative.
• The UAE fully supports UN resolutions and sanctions to contain Iranian nuclear weapons capabilities.
• The UAE participated in the recent Annapolis talks and is a member of the Arab Quartet, promoting a peaceful resolution to the Israeli-Palestinian conflict.

The UAE currently has a pending request for a significant purchase of US-made defense systems and equipment. Past military equipment programs with the United States include:

• HAWK Air Defense Missile System (Raytheon)
• AH-64 APACHE Helicopter (Boeing)

Currently being upgraded to Longbow configuration:

• UAE Air Force Command and Control System (Northrop Grumman)
• C-130 Cargo Aircraft (Lockheed Martin)
• F-16 E/F Advanced Fighter Aircraft (Lockheed Martin)
• Multiple weapon systems associated with F-16 E/F
• Weapon systems for Navy Baynunah Class Corvettes
• UH-60 Blackhawk Helicopters
• High Mobility Artillery Rocket System.

Social and Cultural Ties with the United States

The UAE is an innovative social investor, seeking ways to expand opportunities for UAE citizens and help address regional and global challenges:

• Women are given full rights in the UAE Constitution, are well-educated and protected in the workplace. Two cabinet ministers are women—including Sheikha Lubna Al Qasimi, Minister of the Economy, who was on Forbes magazine’s list of the 100 most powerful women in the world.
• Through its Masdar Initiative, the UAE is investing billions of dollars in renewable energy and new environmental technologies.
• University and NGO partnerships encourage shared experiences, while advancing local capacity.
• New York University , Michigan State, George Mason, MIT and Rochester Institute of Technology are among the US universities that have announced or launched programs or campuses in the UAE.
• Faculty from Hopkins’ Bloomberg School of Public Health are advising the UAE on public health issues and helping to establish a public health doctoral program in the Emirates.
• The Harvard Medical School Dubai Center (HMSDC) is a joint project of Harvard University and the Dubai Healthcare City (DHCC). An institute for Postgraduate Education and Research was established in 2004 to foster the professional development of physicians, nurses, research scientists, and allied health professionals.
• The Cleveland Clinic, over a 15-year period, will establish, develop and operate a world-class specialty hospital and clinic, called Cleveland Clinic Abu Dhabi.
• The Johns Hopkins Medical School manages health care systems in Abu Dhabi under a 2006 agreement, including the 469-bed Tawam Hospital.
• Susan G. Komen Breast Cancer Foundation has a partnership with the UAE government for breast cancer education.

Americans in the UAE

• More than 28,000 Americans reside in the UAE.
• There are four daily non-stop flights between the US and the UAE.

UAE Global Humanitarian Initiatives

The UAE has provided significant funding and assistance to Iraq, including:

• Medical treatment for Iraqi children in the UAE at no cost.
• Training for Iraqi police in the UAE.
• Funding for reconstruction of hospitals in Iraq.
• Funding and supplies for a military hospital in Baghdad.
• Shipping large quantities of humanitarian supplies to Iraq.

In addition, the UAE’s sizeable foreign aid activities include:

• Significant funding for Tsunami Relief ($100 million).
• Significant funding for Pakistani Earthquake Relief ($100 million).
• Significant funding for Hurricane Katrina Relief ($100 million).