Page 118 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

102 Dubai & Co.

One proposal for the States’ future disposition was to create a
federation that would include all the Trucial States plus Bahrain
and Qatar. Terms could not be agreed on, however, with the latter
two states, and therefore the remaining states formed the United
2
Arab Emirates in December 1971. Abu Dhabi was chosen as the
capital, and its ruler, Sheikh Zayed bin Sultan Al Nahyan, became
president of the UAE.
According the UAE’s constitution, the presidential term is to
last five years. One vision for the federation was that the office
would rotate among the rulers (emirs) of the constituent states, who
collectively form the country’s Supreme Council of the Union
(SCU). In practice, however, the presidency has remained with Abu
Dhabi since 1971, which is a reflection of Abu Dhabi’s economic
dominance: Abu Dhabi controls 94 percent of the UAE’s oil reserves
and contributes the largest share of its GDP. Sheikh Zayed ruled the
UAE from its formation until his death in 2004, after which his son
Sheikh Khalifa bin Zayed Al Nahyan was made ruler of Abu Dhabi
and president of the UAE. The Supreme Council of the Union plays
a central role in setting federal policy, combining legislative and
executive powers. The SCU is empowered to legislate on all matters
of state, and it ratifies federal decrees.
As the presidency of the UAE has de facto become Abu
Dhabi’s role, the role of vice president and prime minister belongs
to Dubai. As head of the government, the prime minister leads the
Council of Ministers (the cabinet) and shapes the executive policy
of the country. The current prime minister is Sheikh Mohammed
bin Rashid Al Maktoum, the ruler—some say CEO—of Dubai and
the figure credited with driving much of Dubai’s development
over the past decade. Since Sheikh Mohammed assumed the role
after the death of his older brother, Sheikh Maktoum bin Rashid, in
2006, many observers have been looking forward to an increased
spirit of dynamism and openness at the federal level in line with
Sheikh Mohammed’s track record in Dubai.
The closest equivalent to a parliament in the UAE is the Federal
National Council (FNC), which consists of 40 members and plays only
a consultative role and does not make laws. Abu Dhabi and Dubai are
allocated the most seats in the FNC, followed by Ras al-Khaimah and
Sharjah and then the other emirates. There are no formal political
parties in the FNC or elsewhere in the UAE political system.