When we think of the Middle East, automatically most think of the agonies of Iraq and Palestine, that’s like judging Asia because of Burma, or Africa because of The Congo.  There’s more to this region than that.  I spend time there where I’m on some commercial boards, visit universities, and I have a debt of honour to the Government of Qatar for their assistance in launching the Doha Trade round when I was Director-General of the World Trade Organisation.  The nations of the Gulf Co-Operation Council (GCC), Bahrain, Oman, Qatar, Saudi Arabia, Kuwait, and the United Arab Emirates (UAE) are committed to creating a common economic unit.  Imperfect progress is being made.  The UAE is a federal state of small emirates, the most well-known of which is Dubai, which now enjoys more tourists than Egypt.  It’s airport gets 30 million visitors, its airline, alongside Qatar’s, is the fastest-growing in the world.  Only 40% of Dubai’s income is now resource-based.  The UAE’s growth is staggering.  Sixty percent of the world’s cranes are at work there.  New cities - an internet city, a cinema industry ($500 million earmarked), an education city, the first-ever green, carbon-neutral city is planned.  The world’s largest building will soon be finished, many of the world’s great universities have satellite campuses being built.  Twice as many women are at local universities than men.  Women Ministers serve in most Emirates.  Women account for 45% of vehicle purchases, and outspend men in consumer electronics.

The GCC’s GDP per capita is about US$20,000.  Together they would be the 7th largest economy in the developing world, twice the size of Turkey, South Africa, or the Argentine.  Their global savings higher than China’s, and her current account surplus on a par with China.  The Abu Dhabi Investment Authority is second only to the Bank of Japan in terms of assets.  UAE investments range around the world to Daimler, Deutsbank, Citibank, Sainsbury, Ferrari, Aston Martin, growing and changing.  The IMF suggests infrastructure investment will reach $800 billion by 2010.  NZ is negotiating a free trade deal with the UAE, Australia has already signed up.  When a Dubai company looked at buying into the Auckland Airport, our Minister of Trade & Foreign Affairs elbowed each other to get on TV to oppose the deal.  Winston Peters was the Treasurer whose name is on the original airport sales prospectus, but did not stipulate private shares were not to be sold offshore, nor designated the airport as a strategic asset.  When the Canadians were looking at investing, the Government said it wouldn’t be rushed into a decision.  Pardon?  Too late, investors were treated differently based on nationality.   

Before the Government spin machine attacks me, I have no dog in this fight.  On the respected index of economic freedom, the GCC is well ahead of Russia, China, and India.  Half the GCC states score ahead of Italy.  The small states are oases, laboratories of progress, where success is causing a global splash, a global ripple, which we all have a stake in.  Alongside Shanghai and Hyderabhad, they are the most interesting and exciting places in the world.  There is a commitment to commercial law, which is why most of the world’s banks and multi-nationals are there.  All are members of the World Trade Organisation and subject to its agreed rules and obligations. 

At many think-tanks I’ve visited, they speak openly of how they can evolve into constitutional monarchies, some elections are being cautiously held.  Migrant workers who can outnumber the locals by five to one.  Labour rights are, alas, very weak, but growing.  Remittances from these workers to The Philippines, Pakistan, and India are worth more to them than all the development aid from Western capitals.