Tuesday 24 May 2011

Beginning of the oil era

Beginning of the oil era

At the beginning of the 1960s, the first oil company teams carried out preliminary surveys and the first cargo of crude was exported from Abu Dhabi in 1962. As oil revenues increased, ruler of Abu Dhabi, Zayed bin Sultan Al Nahyan, undertook a massive construction program, building schools, housing, hospitals and roads. When Dubai’s oil exports commenced in 1969, Rashid bin Saeed Al Maktoum, the de facto ruler of Dubai, was also able to use oil revenues to improve the quality of life of his people.[25]
In 1955, Great Britain sided with Abu Dhabi in the latter's dispute with Oman over the Buraimi Oasis, another territory to the south.[26] A 1974 agreement between Abu Dhabi and Saudi Arabia would have settled the Abu Dhabi-Saudi border dispute; however, the agreement has yet to be ratified by the UAE government and is not recognized by the Saudi government. The border with Oman also remains officially unsettled, but the two governments agreed to delineate the border in May 1999.[27]

[edit] Zayed bin Sultan Al Nahyan and the union

In the early 1960s, oil was discovered in Abu Dhabi, an event that led to quick unification calls made by UAE sheikdoms. Zayed bin Sultan Al Nahyan became ruler of Abu Dhabi in 1966 and the British started losing their oil investments and contracts to U.S. oil companies.[28] The British had earlier started a development office that helped in some small developments in the emirates. The sheikhs of the emirates then decided to form a council to coordinate matters between them and took over the development office. They formed the Trucial States Council,[29] and appointed Adi Bitar, Sheikh Rashid bin Saeed Al Maktoum's legal advisor, as Secretary General and Legal Advisor to the Council. The council was terminated once the United Arab Emirates was formed.[30]
In 1968, the United Kingdom announced its decision, reaffirmed in March 1971, to end the treaty relationships with the seven Trucial Sheikhdoms which had been, together with Bahrain and Qatar, under British protection. The nine attempted to form a union of Arab emirates, but by mid-1971 they were still unable to agree on terms of union, even though the British treaty relationship was to expire in December of that year.[31]
Bahrain became independent in August, and Qatar in September 1971. When the British-Trucial Sheikhdoms treaty expired on December 1, 1971, they became fully independent.[32] The rulers of Abu Dhabi and Dubai decided to form a union between their two emirates independently, prepare a constitution, then call the rulers of the other five emirates to a meeting and offer them the opportunity to join. It was also agreed between the two that the constitution be written by December 2, 1971.[33] On that date, at the Dubai Guesthouse Palace, four other emirates agreed to enter into a union called the United Arab Emirates. Ras al-Khaimah joined later, in early 1972.[34][35]
After the 9/11 terrorist attacks on the United States the UAE was identified as a major financial center used by Al-Qaeda in transferring money to the hijackers (two of the 9/11 hijackers, Marwan al-Shehhi and Fayez Ahmed Bannihammad, who allegedly crashed United Flight 175 into the South Tower of the World Trade Center, were UAE citizens). The nation immediately cooperated with the U.S., freezing accounts tied to suspected terrorists and strongly clamping down on money laundering.[citation needed]
The UAE supports military operations from the United States and other Coalition nations that are engaged in the war against the Taliban in Afghanistan (2001) and Saddam Hussein in Iraq (2003) as well as operations supporting the Global War on Terrorism for the Horn of Africa at Al Dhafra Air Base located outside of Abu Dhabi.[citation needed] The air base also supported Allied operations during the 1991 Persian Gulf War and Operation Northern Watch. The country had already signed a military defense agreement with the U.S. in 1994 and one with France in 1995.[citation needed]
On 2 November 2004, the UAE's first president, Sheikh Zayed bin Sultan Al Nahyan, died. His eldest son, Sheikh Khalifa bin Zayed Al Nahyan, succeeded as ruler of Abu Dhabi. In accordance with the constitution, the UAE's Supreme Council of Rulers elected Khalifa as president. Sheikh Mohammad bin Zayed Al Nahyan succeeded Khalifa as Crown Prince of Abu Dhabi.[36] In January 2006, Sheikh Maktoum bin Rashid Al Maktoum, the prime minister of the UAE and the ruler of Dubai, died, and the crown prince Sheikh Mohammed bin Rashid Al Maktoum assumed both roles.

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