Since the establishment of the United Arab Emirates, the country has played an active role in the provision of financial aid to developing countries and has been a major contributor of emergency relief to countries and areas affected by conflict and natural disasters. This process began with the creation of the main governmental aid-giving agency, the Abu Dhabi Fund for Development (ADFD) in mid-1971, before the UAE itself was created. The philosophy behind the aid policy is two-fold - first, the provision of help for the needy is a duty incumbent on all Muslims and, second, the country's policy on utilisation of the revenues from its oil and gas production has always included a component that they should be devoted, in part, to helping other countries, whether Arab, African or Asian, which have been less well-endowed.

The philosophy was well-described by former UAE President Sheikh Zayed bin Sultan Al Nahyan in his statement on the occasion of the 2003 UAE National Day.

Foreign aid and assistance is one of the basic pillars of our foreign policy. For we believe that there is no true benefit for us from the wealth that we have unless it does not also reach those in need, wherever they may be, and regardless of their nationality or beliefs. That is why we have ensured that our brothers and our friends have shared in our wealth.

One major focus in late 2004 and in early 2005 was the provision of emergency relief for those countries around the Indian Ocean that were hit by the devastating earthquakes and tsunamis that occurred in late December, and in which over 200,000 people were estimated to have lost their lives, with millions being made homeless.

With many UAE residents coming from some of the countries that were worst hit, including Indonesia, Sri Lanka and India, support for the relief efforts came not just from the Government and from humanitarian agencies, but from companies and individuals as well.

First to swing into action was the UAE Red Crescent Authority, which, on the instructions of President HH Sheikh Khalifa, started to send money and relief supplies, as well as rescue and medical teams, within a day of the disaster taking place. Overall, the authority spent over Dh45 million of its own resources in its rapid-response activities, many of these being facilitated by the UAE Armed Forces, who, on Government directions, supplied cargo planes to fly relief supplies to the areas that had been worst-affected. The authority also raised many millions more from the public to supplement its own funds, while the Government also made cash donations, including US$20 million (nearly Dh75 million) in the first few days, followed by further donations, channelled through host governments and aid agencies, as Red Crescent Authority teams reported back on the scale of the disaster

Almost all sectors of UAE society contributed to the provision of relief assistance. Prominent amongst the aid-givers were, of course, humanitarian bodies like the Mohammed bin Rashid Charity and Humanitarian Foundation, the Zayed Charitable and Humanitarian Foundation and the Umm al-Qaiwain Charity Organisation, these bodies often working in close coordination with the Red Crescent. Others who contributed help on the ground and in shipping relief aid included Emirates airline, who sent teams to help airports in the stricken areas to cope with extra traffic and freight and provided free cargo space, both for locally-provided aid and for supplies coming from Europe.

Local companies made substantial donations, both in cash, like the National Bank of Abu Dhabi, which gave Dh5 million, and Borouge, part of the ADNOC Group, and in kind, like Etihad Airways, Julphar Pharmaceuticals, who donated medicines, Masafi Mineral Water, who donated bottled water, and the Abu Dhabi National Oil Company, which shipped two mobile petrol filling stations. Ordinary individuals took part in special events to raise money, like the staff and students of the Abu Dhabi Women's College, the Abu Dhabi University, workers in the Bu Hasa oilfield and other bodies. And, with the immediate impact of the disaster over, UAE institutions also helped in the important process of reconstruction, the Sharjah Welfare Organisation, for example, undertaking the task of rebuilding a village in Sri Lanka.

In this task of reconstruction, the Red Crescent Authority is, once again, playing a major role. One project, in Sri Lanka, is the construction of a Sheikh Khalifa City to house peoples whose homes were destroyed in the tsunami. With 400 housing units, a school, a health centre and a mosque, the project, being carried out in association with the United Nations Development Programme, will help hundreds of families to make a new start in life.

A prominent part in the relief effort was played by the recently-established Dubai Humanitarian City, an initiative of the Dubai government that has provided international relief agencies with administrative, storage and logistics facilities from which they can manage their activities throughout the region.

Another response to a disaster arising out of natural causes came in early September, when the American city of New Orleans, and an area of the southern United States as large as Britain was devastated by Hurricane Katrina. Once again, the Red Crescent Authority offered support, such as flying in emergency relief supplies.

The provision of aid, however, is not confined simply to responding to natural disasters. There is also a long-term focus on tackling poverty and deprivation, both through a programme of government-to-government loans and grants, and through other channels.

Thus in May 2005, the Zayed Charitable and Humanitarian Foundation signed an agreement with the United Nations Development Programme (UNDP) to provide Dh5.5 million to fund the drilling of water wells in drought-stricken Niger. The agreement is part of a programme that will see the foundation spend a total of Dh55 million drilling water wells in ten African countries, also including Sudan and Somalia. Among other projects being supported by the foundation is the Sheikh Zayed Regional Eye Centre in the West African state of The Gambia, being built in association with London-based Sightsavers International. This will provide training in ophthalmology to students from throughout the region.

The UAE Red Crescent Authority is another body that is active much more widely than in simple disaster relief, although this is an important aspect of its operations. In April 2005, the foundation stone was laid for another new RCA project, the Sheikh Zayed bin Sultan Al Nahyan City, in Kabul, Afghanistan. Being built on the instructions of UAE President HH Sheikh Khalifa bin Zayed Al Nahyan, the City is intended to provide basic needs for thousands of displaced Afghans. The authority is also supervising the construction of a new university in the Afghan city of Khost and other health and water-supply projects, part of efforts to help Afghanistan develop its infrastructure.

Overall, the Red Crescent Authority had spent over Dh106 million on relief projects by the end of the first half of 2005. While much went on tsunami-related work, the authority was also active in many other countries, including Iraq and Palestine, helping those affected by conflict; in Pakistan, on flood relief; in Iran, helping those affected by earthquakes; and in Africa. This expenditure complemented a further Dh211 million spent on projects in some 30 countries during 2004.

In terms of reconstruction, though, the largest UAE initiative during the last year was the announcement in July, that it would fund a US$100 million project to construct homes for 30,000 to 40,000 Palestinians in the Gaza Strip, to replace the Israeli settlements being abandoned as part of the withdrawal of Israeli forces from Gaza. The project, being carried out on the orders of President Sheikh Khalifa bin Zayed, will be undertaken in association with the United Nations Relief Works Agency (UNRWA) and the Palestine National Authority.

It complements three other major UAE-funded initiatives in Gaza and the West Bank, the Sheikh Zayed City in North Gaza, which was formally inaugurated in May 2005, the reconstruction of the Jenin refugee camp, destroyed by Israeli forces, and a new township in Rafah.

The Abu Dhabi Fund for Development (ADFD), which was established in 1971, also continued its activities during 2005, making two new loans, one to Jordan, for Dh29.3 million, for the construction of a paediatric hospital in Amman, and one to Lebanon, for Dh110 million, to finance three water and drainage projects.

Overall the fund has now given nearly Dh20 billion in form of development loans, assistance and grants, with a total of 56 countries benefiting from its activities, through nearly 250 individual projects, these often being financed in association with other international and national aid-giving agencies. Financial assistance provided directly by the Abu Dhabi government is also managed by the fund. The bulk of the assistance has been given to support the development of infrastructure. These include roads, airports, seaports, water, electricity, agriculture, communications and housing. While assistance has also been given to improve health and educational services and generate employment opportunities.

The financial assistance is made available in the form of concessionary loans, grants and direct investments offered with a low rate of interest, lengthy period of repayment and a long grace period. A typical loan is repayable in 8 to 20 years and carries an interest rate at 3 to 6 per cent with a grace period of three to eight years.

In addition to financial grants and easy-term loans, the ADFD also makes direct investments in private-sector projects. Beneficiaries of the direct investment projects include Egypt, Morocco, Syria, Jordan, Oman, Tunisia, Algeria, Palestine, Bahrain, Yemen, Lebanon, Sudan, Somalia, Mauritania and Djibouti. Operations in these countries covered agriculture, dams, animal wealth, fisheries, social services, power and water, communications, transport, tourism and health. The food production sector is given a top priority. The fund also gives special attention to projects like tourism that carry higher potential rate of return, create job opportunities and generate hard currency.

The Government of the United Arab Emirates is also an active participant of a number of multi-lateral aid-giving institutions, including the World Bank, the International Monetary Fund (IMF), the International Development Agency (IDA), and regional bodies like the OPEC Fund for International Development, the Arab Gulf Fund for the UN (AGFUND), the Arab Bank for Economic Development in Africa (BADEA), the Abu Dhabi-based Arab Monetary Fund (AMF) and the Islamic Development Bank (IDB).

UAE pledges US$300,000 annual support to OCHA
posted on 10/05/2006

The United Arab Emirates has decided to join the group of UN member countries contributing to the Office for the Coordination of Humanitarian Affairs (OCHA), pledging an annual grant of US$300,000 in support of the group's contingency planning efforts.

The announcement came during OCHA meeting, opened in Abu Dhabi yesterday. The meeting is organised by the UAE Red Crescent Society. It is being held under the patronage of General Sheikh Mohammed bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces.

Sheikh Hamdan bin Zayed Al Nahyan, Deputy Prime Minister and RCS Chairman said the decision came as part of the UAE's efforts to alleviate sufferings of the people affected by natural disasters or armed conflicts in different areas of the world. "It is important that an effective mechanism is devised to coordinate and further strengthen partnership among the group's member countries," Sheikh Hamdan said.

He added that situation in some hotspot areas requires more efforts to respond to emergency cases and to rally support for humanitarian issues. "The current humanitarian scene calls for leveraging cooperation among UN agencies and NGOs to enhance dialogue, to exchange information and to develop ideas for effective humanitarian work," Sheikh Hamdan said.

Sana'a Darwish Al Kutbi, RCS Secretary general, said that the step taken by the UAE to join OCHA donors group mirrors the country's keenness to consolidate partnership for quick response to emergencies and crises in the world.

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