Page 408 - UAE Truncal States_Neat

The Formation of the Federation

embassies had been opened in twenty-one countries. State visits and
the exchange of governmental delegations became frequent occur­
rences, and the UAE participated in conferences taking place in all
corners of the world.
The UAE firmly engraved its name on the minds of officials of
many a developing country which benefited from Abu Dhabi’s
generosity; the aid was given in the name of the Federation.
Initially aid was mostly in the form of grants to foreign govern­
ments and institutions. In 1974, after the price of oil had almost
quadrupled over a span of seven months, Abu Dhabi reached a
record by giving some 28 per cent of that year’s income in foreign aid
in addition to paying the lion’s share of the 1974 federal budget. This
aid represented nearly half the total disbursements of Abu Dhabi in
that year. In later years the amount given in aid rose in step with the
rising revenues from oil, but it did not again reach the high
percentage of 1974.
It took some years for the Abu Dhabi Fund for Arab Economic
Development to start disbursing funds for projects which it had
adopted, because of the time taken to evaluate the economic
feasibility in the recipient countries. The Fund does not lend money
to governments but it finances up to 49 per cent of projects at
favourable interest rates. It has disbursed Dh.1,412.9 million and
made loan agreements worth Dh.2,833.5 million up to the end of 1979.
Overall, the share of aid in the form of grants has in recent years
diminished in favour of project-orientated capital participation and
cheap loans. The aid, given from government to government as well
as the assistance which innumerable international and Arab funds,
foundations and charitable organisations received when they turned
to Abu Dhabi, assisted many people.142 But it also helped to spread
the name of the UAE.
In direct continuation of the close contacts established between
the Gulf States leading up to the formation of the Federation, the
UAE eagerly supported any moves which promised closer regional
co-operation. This met with success in a number of specialised fields
such as aviation, information exchange, oil affairs and currency
alignment. It is interesting to note that the member Emirates rarely
appeared as individual participants after 1972, but that the federal
government had taken over in this domain where the seven
shaikhdoms used to act individually.
The shockwave caused by the outbreak of war between Iraq and
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