UAE - The Campaign Against Terror - Part 18.

The UAE is one of the frontline states in the US led war on terror, but it is one that stays out of the spotlight. Over the past three decades, since the creation of the federation in 1972, the UAE has played a discreet role in geo-political matters, preferring to concentrate on economic issues. In this period, the emirate of Abu Dhabi has emerged as one of the wealthiest city-states in the world, while Dubai has built itself into a commercial hub rivaling Singapore and Hong Kong.

In the process, the UAE has emerged as a strategic player that has considerable regional influence but its President, Shaikh Zayed Bin Sultan Al Nahyan, has pursued a wise and low profile diplomacy, careful not to create enemies or alienate friends. The events of Sept. 11, 2001, posed a challenge even to formidable but usually discreet skills of Shaikh Zayed, who is also the ruler of Abu Dhabi. He was quick to sympathise with the US and condemn the terror strikes on the WTC and the Pentagon. Since then, Abu Dhabi has extended full co-operation to the US in its war against terrorism

The UAE has itself been caught up to some extent in this war, especially in terms of its financial aspects. It has emerged that the money that was transferred to Mohammed Atta, the ringleader among the hijackers involved in the Sept. 11 attacks, was channeled via Dubai through the so-called "hawala" method. Hawala transactions represent an underground banking network that circumvents conventional banking and relies mainly on word of mouth and trust to shift millions of dollars from one country to another. These transactions are organised mainly out of South Asia, with Dubai having been a major hub for many years.

The UAE government has co-operated closely with Washington in providing intelligence on such transactions and tightening regulations so that Islamist groups will find it hard to transfer funds through UAE financial institutions in future. The leadership was quick to recognise that, in the geo-political climate that emerged worldwide after 9/11, it could prove to be seriously damaging if the country becomes labeled as a channel of funds for terrorism - especially in view of Dubai's economic standing and reputation (see following pages).

However, it is important to note that the UAE has also remained relatively insulated from the war on terror, in terms of domestic unrest, terror attacks, etc. Unlike Saudi Arabia and Bahrain, the UAE has never faced an internal instability derived from Islamic radicalism. Nor has it come under terrorist attacks like Saudi Arabia - although the UAE too hosts US military facilities.

Indeed, in the Middle East, there are few states that can boast of the credentials which the UAE has in terms of political, economic and social stability. Since the creation of the union, it has defied all predictions of its disintegration and of internal strife. On the contrary, the UAE today is one of the most prosperous states in the world, in per capita terms, and its future prospects remain optimistic in comparison to any other part of the region and almost any part of the world.

Internally, the UAE is a tolerant society with a "live and let live" approach to other sects and religions. Although UAE nationals are mainly of the Sunni branch of Islam, there are a large number of Shiite Muslims, Christians, Hindus and followers of other religions in the union. Foreigners account for as much as 85% of the UAE's 2.4 million population. There are churches and temples in the federation, reflecting a level of cultural confidence and sophistication among UAE rulers that is not common in other parts of the Arab World