An Oil-Rich Ally Tests Its Relationship With the U.S.

THE NEW YORK TIMES: The United Arab Emirates, which has translated its wealth into outsize global influence, is diverging from U.S. foreign policy — particularly when it comes to isolating Russia and limiting ties with China.

The marina district in Dubai. The Emirates has thrived on an influx of Russian money, oil and gold, fueling a feeding frenzy in real estate. | Andrea DiCenzo for The New York Times
The ruler of the United Arab Emirates, Sheikh Mohammed bin Zayed, is a key American ally who counts on the United States to defend his country.

But he has traveled twice to Russia over the past year to meet with President Vladimir V. Putin, and in June, his country was celebrated as the guest of honor at the Russian leader’s flagship investment forum. Later this month, the Emirati and Chinese air forces plan to train together for the first time, a notable shift for an oil-rich Gulf nation that has long relied on American fighter jets, weapons and protection.

These deepening relationships show how a Middle Eastern leader viewed by the U.S. government as an important partner is increasingly striking out on his own path. American officials have had limited success in persuading Sheikh Mohammed to align with U.S. foreign policy — particularly when it comes to limiting Chinese military ties and isolating Russia after the invasion of Ukraine.

Instead, the Emirates has thrived on inflows of Russian money, oil and gold, fueling a feeding frenzy in real estate in the glittering metropolis of Dubai. The growing ties with both American rivals and expanding economies like India are all in preparation for a world that may someday be no longer dominated by the United States.

“What we’re seeing in the international order is not necessarily a multipolar world, but we’re seeing a more fluid world where things are changing,” Anwar Gargash, a diplomatic adviser to Sheikh Mohammed, told The New York Times recently. In a lecture in Arabic last year, he was much blunter, declaring that Western hegemony was “in its final days.” » | Vivian Nereim, Reporting from Dubai and Abu Dhabi in the United Arab Emirates | Tuesday, August 8, 2023

Saudi Arabia, Kuwait, Qatar and UAE among Top 10 Countries in World by Proportion of Ultra[-]wealthy Households, Says Study by BCG
AME.info: Saudi Arabia, Kuwait, Qatar and UAE emerged as four of the top ten countries in the world with the highest density ultra[-]wealthy households. The findings appear in BCG's eleventh annual Global Wealth report titled Shaping a New Tomorrow: How to Capitalize on the Momentum of Change, which was released recently in the Middle East.

According to the study, "ultra-high-net-worth" (UHNW) households, defined as those with more than $100m in AuM, were most highly concentrated in Saudi Arabia registering 18 per 100,000 households. This was followed by Switzerland (10), Hong Kong (9), Kuwait (8), Austria (8), Norway (7), Qatar (6), Denmark (5), Singapore (5) and the UAE (5).

Qatar, Kuwait and UAE also made it to the top ten list in terms of the highest proportion of millionaire household by market with 8.9%, 8.5% and 2.6% millionaire households, respectively. » | Press Release | Thursday, June 02, 2011

”Tribal Capitalism”
THE SUNDAY TELEGRAPH: The death of Abu Dhabi's Sheikh Ahmed bin Zayed al-Nahyan, controller of the world's largest sovereign wealth fund, has thrown the spotlight on one of the world's most powerful families.

Mourners at the funeral of Sheikh Ahmed bin Zayed al-Nahyan. The two in the centre of the pic are Crown Sheikh Mohammed bin Zayed, Crown Prince (L) and Sheikh Khalifa bin Zayed, Ruler of Abu Dhabi, President of the UAE. On the far right is Sheikh Mansur, deputy prime minister and owner of Manchester City. Photograph: The Sunday Telegraph
He was a multi-billionaire, and scion of one of the world's most powerful families. But until his microlight aircraft crashed into a Moroccan lake last weekend few outside the narrow confines of the Gulf, and the even narrower confines of sovereign wealth finance, would have heard of Sheikh Ahmed bin Zayed al-Nahyan.

To some extent, that is understandable. In the world of Gulf princes, he was one among a secretive cast of thousands. As managing director of the world's biggest sovereign wealth fund, discretion was his watchword.

He himself was one of 19 brothers, led by the eldest, Sheikh Khalifa bin Zayed, Ruler of Abu Dhabi and President of the United Arab Emirates. With his close-trimmed beard and standard-issue white robes and kaffiyeh, he could pass for any one of the powerful royals who run the emirates and neighbours such as Saudi Arabia.

Even so it was odd that his death at the age of 41 attracted only a few passing newspaper paragraphs in the West. The Nahyan family, Abu Dhabi's hereditary emirs, are significant players on the world stage, and their ability to avoid the limelight is itself beginning to attract attention.

"They are not interested, they don't want it," says one Abu Dhabi insider. "They don't give interviews, they just get on with it."

But in terms of publicity, Sheikh's Ahmed's death is likely to be just the start of it. What they are "getting on with" nowadays is running boardrooms, influencing geopolitics and - above all - growing the richest family business in the world. Slowly, they are becoming aware that as the spotlight turns on them, they will become fodder for front-page headlines and, no doubt, gossip columns too.

Sheikh Ahmed, 41, died after apparently fouling up a landing in a microlight he was learning to pilot. He had been holidaying at a Nahyan family palace by a lake in the Moroccan hills. His instructor survived and got ashore; Sheikh Ahmed's body was eventually found on Tuesday.

Immediately, the whispers started. No-one in authority suspects anything other than an accident, but his half-brother, Sheikh Nasser bin Zayed, also died in a crash when the helicopter he was piloting plunged into the Gulf two years ago.

It was an unfortunate coincidence: could the Nahyans be suffering the "curse of the Khaleej Kennedys", asked one gossip - Khaleej being the Arabic for Gulf.

Comparison with the Kennedys would cause the conservative Nahyans to shudder with horror. But if the United Arab Emirates is not yet the United States, the Nahyans are just as handsome as the Kennedys and much, much richer. Inside the world of the 'Kennedys of the Gulf' >>> Richard Spencer in Abu Dhabi | Easter Sunday, April 04, 2010

Abu Dhabi Will Not Race to Dubai's Rescue
THE SUNDAY TELEGRAPH: Sheikh Mohammed of Dubai is under mounting pressure to explain the emirate’s debt problems, after Abu Dhabi indicated that it will not write a blank cheque to bail out its neighbour.

According to officials, Abu Dhabi, the richest state in the United Arab Emirates, will be cautious about how and whether to assist Dubai World, the state holding company that this week suspended repayments on a $3.5bn (£2.1bn) Islamic bond due in mid-December.

Any sign that Abu Dhabi’s support may not yet be secured could push global markets further into turmoil tomorrow, analysts said, especially if Dubai’s ruler maintains his silence on the crisis beyond this weekend’s Eid religious holiday. Sources said he may be forced to disrupt the 10-day Islamic break to make a statement as early as tomorrow.

“We will look at Dubai’s commitments and approach them on a case-by-case basis. It does not mean that Abu Dhabi will underwrite all of their debts,” a senior Abu Dhabi official said.

“Until things become clearer, it is very difficult to make any further investment decision on the bonds. Many things have to be clarified by Dubai.”

Dubai World’s $59bn of liabilities make up the majority of the emirate’s total $80bn debts. >>> Rowena Mason and Louise Armitstead | Sunday, November 29, 2009

Dubai Tries to Stem Panic as Financial Crisis Shakes Investors Around World
THE GUARDIAN: FTSE 100 opens down 70 points before regaining ground / Japan's Nikkei closes down 3.2%; Hang Seng falls 5.3%

The Dubai financial crisis continued to send shares and commodities falling around the world this morning, despite efforts by the emirate's ruling family to calm the panic.

In London, the FTSE 100 tumbled by 70 points, or nearly 1.4%, to 5123 when trading began – but by 9.15am had erased nearly all of its losses. HSBC and Barclays were among the biggest fallers, along with mining companies.

There was also a bout of heavy selling in Asia. The Nikkei 225 closed 3.2% lower, with Japan's biggest banks leading the fallers. Hong Kong's Hang Seng index fell by 5.3%.

Major building firms in Asia also fell sharply, as traders anticipated that the Dubai building boom was over.

Predictions that Dubai could drag the world economy downwards again knocked $5.50 off the price of a barrel of oil, to $72.49.

Yesterday the FTSE 100 suffered its worst day's trading since March, falling by 170 points. This followed the news that Dubai World – the government-owned conglomerate that has led the dramatic growth in the Emirate – has asked to defer repaying some debts for six months.

It is still unclear whether Dubai World will default on its $80bn debts, which would be a major blow to the banking sector, or be bailed out by the United Arab Emirates.

Sheikh Ahmed bin Saeed al Maktoum, the uncle of Dubai's ruler Sheikh Mohammed bin Rashid al Maktoum, attempted to calm the situation last night. >>> Graeme Wearden | Friday, November 27, 2009

Dubai Halts Work on New Tallest Skyscraper as Even Oil-rich Arab Countries Feel the Pinch of the Credit Crunch
MAIL Online: The developer of potentially the world's tallest skyscraper is halting work on the project for a year as the Middle East's business and entertainment capital grapples with the financial crisis.

State-owned builder Nakheel's decision to shelve the landmark development - which it unveiled only in October - came as a leading credit rating firm warned that falling real estate prices will likely hurt banks in Dubai and elsewhere in the United Arab Emirates.

Home values in the emirate tumbled 8 percent in the last three months from the previous quarter, a report said, marking what analysts say is the first such decline in years.

The halted skyscraper was planned to soar the length of more than 10 American football fields. Analysts said its unveiling late last year showed a lot of confidence amid the souring global economy.

State-owned Nakheel said in a brief statement that 'further work' on its building's foundations '[would] commence in 12 months'.

The developer did not say how much work, if any, had already been completed.

'This is part of our readjustment of our immediate business plans to better reflect the current market trends and match supply with demand,' the company said. >>> By Mail Foreign Service | Wednesday, January 14, 2009

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Targeting Opportunities in the United Arab Emirates
EMIRATES BUSINESS 24/7: Dow Jones Indexes has opened its first office in the region in Dubai. While the office will promote all the company's indexes, attention is likely to be given to the Dow Jones Islamic Market Indexes, which were launched in 1999. The Dubai office will target investment banks, asset managers, fund managers and exchanges across the region. Sumeet Nihalani, senior director for Asia Pacific and Middle East, spoke to Emirates Business about what Dow Jones Indexes hopes to achieve from its presences in the region and the general outlook for Islamic banking.



Why has Dow Jones Indexes decided now is the time to establish a new presence in the Middle East? 



We have been in the Islamic market and business index for a long time. But we have been growing our business with the licensees in the Middle East. As this business grew, it was important to have somebody in terms of proximity to be able to efficiently and in a timely manner to serve and support potential clients. We have seen a lot of growth in the Middle East – mainly in GCC countries. And we have seen a lot of growth in the Middle East around Islamic index opportunities. It is important to have somebody on the ground to see what are the emerging trends. And to see how we can fit our competence with local knowledge and understanding to the local market place to create more products or different products. 



What are the challenges facing Islamic financial banking? 


I would like to use the word opportunities rather than challenges. I do think there are a number of opportunities. As a lot of banking and financial professionals engage themselves with Islamic finance activities, they are able to create new products and services that can be [useful] across regions. And they can address the different aspects of Islamic finance in insurance, mortgages, etc. Our office has given us a good opportunity to contribute to this and bring our global experience to Dubai and the region in similar services in this market place. Also, the members of our Sharia board who provide Islamic Finance expertise to Dow Jones Indexes and provide the Sharia rules that we apply to our index components are located here.
Targeting Opportunities in UAE >>> By Rami Eljundi | April 29, 2008

The Dawning of a New Dark Age (Paperback - UK)
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