Pakistan is an old friend of the UAE. With strong links dating back decades, the development of good relations and close cooperation between the two nations remains one of the top priorities to date.
Bilateral ties have reached their zenith in the past two years with exchange of high profile visits.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, visited Pakistan this May. In December 2005, President His Highness Shaikh Khalifa Bin Zayed Al Nahyan had visited Pakistan, while General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, and Shaikh Hamdan Bin Zayed Al Nahyan, Deputy Prime Minister, visited Pakistan last May.
These visits have greatly bolstered trade and political relations between the two nations.
Ahsan Ullah Khan, Pakistan's Ambassador to the UAE, says, "The relationship between the UAE and Pakistan has taken off from where the late Shaikh Zayed left it. We are extremely pleased that his successors have followed up and maintained the relationship.
During his visit, Shaikh Khalifa announced $50 million (about Dh184 million) for the construction of a modern hospital in Islamabad — the second hospital from the UAE.
And Shaikh Mohammad announced several investment initiatives, including property development, financial service and infrastructure projects worth billions of dollars. Meanwhile, Pakistan promised several sanctions and measures to facilitate UAE investors.
Three agreements signed on this trip included Emaar Properties participation in joint ventures to develop residential, commercial and realty projects, industrial parks, free zones and port terminals; Dubai World and the Ministry of Ports and Shipping to develop Gwadar Beach in Balochistan province; and Dubai Islamic Bank's sanctions to open 70 branches in the country."
Biggest investor
With etisalat taking over the Pakistani telecom firm in 2005 for $2.6 billion (about Dh10 billion), the UAE has become the biggest investor in the country, surpassing even the US.
Identifying telecom, energy, real estate and tourism as some of the most promising sectors, the Pakistani ambassador believes that the UAE investors would greatly benefit from Pakistan's hospitable business environment that offers much potential. "Investors from the UAE include Al Ghurair, Emaar, Emirates Airlines, etisalat, First Gulf Bank," he says.
General Ehsanul Haq, Chairman of Pakistan's Joint Chiefs of Staff Committee, signed the Defence Cooperation Agreement in May to boost the existing military relations, according to Khan.
"After the earthquake rocked Pakistan recently, the UAE offered tremendous support, thereby taking the relationship to an even higher platform. Abu Dhabi even set up an air corridor and flew in supplies and treated victims here.
Thanks to these magnanimous efforts, several children who were laden with spinal injuries have returned to normal life today. Our ties go beyond the mere buy-sell statistics, and we are pleased about that," says Khan.
The country's exports to the UAE have doubled in the last five years from $727.49 million (about Dh2,672 million) in 2001-'02 to $1.4 billion (about Dh5 billion) in 2005-'06, which makes up an impressive 10 per cent of Pakistan's international exports.
The total trade volume between the countries also increased two-fold in the last five years.
Trade volume between the countries totalled about $2.7 billion (about Dh10 billion) during 2004-'05, of which imports from the UAE stood at $1.7 billion (about Dh6.2 billion), while Pakistan's exports amounted to more than $1 billion (about Dh3.6 billion).
Latest trade statistics of the last six months reveal a total trade of $2.1 billion (about Dh8 billion) with a potential 40 per cent increase from that of last year's figures.
The trade balance is in favour of the UAE mainly due to import of petroleum, iron ore, plastic material, chemical products and gold (semi-manufactured).
Pakistan's principal export commodities to the UAE include textiles and garments, livestock and foodstuff, rice, leather and leather goods, footwear, surgical instruments, sports goods, carpets and rugs, engineering goods and jewellery.
The rise in Pakistani exports is due to the aggressive marketing strategies by businesspeople and the Pakistan embassy backed by the Pakistan government's export incentives.
In addition, participation in major exhibitions, maintaining a high level of quality products and exchange of frequent business delegations have boosted Pakistani exports to the UAE.
The recent allotment of a 1,000-square-metre plot of land for a Pakistan Trade Exhibition Centre in Sharjah, by the Sharjah Chamber of Commerce and Industry, is seen as another major milestone in the economic relations.
Delegations from Pakistan's Export Bureau and the Federation of Pakistan's Chamber of Commerce and Industry are expected to visit the UAE in the next few months. They will explore economic opportunities the UAE provides to Pakistani businessmen.
The Pakistan-UAE Economic Commission meeting to be held in Islamabad in the last quarter of the year is also expected to bring positive developments.
Cultural interest
On the cultural front, too, both nations share mutual interest. A protocol on cultural and media cooperation between the two nations for 2004-'06 provides a ground for future cooperation in the cultural field.
Although the embassy is active in bringing Pakistani culture to the UAE, more cooperation in the areas of culture and tourism needs to be explored, according to Khan.
The embassy, Consulate-General in Dubai and community welfare centres provide consular, legal and social support to more than half-a-million Pakistani citizens in the country.
"As part of our 60th year Independence Day celebrations, I wish all my Pakistani compatriots well."
