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The Formation of the Federation

        ment of the central authorities in certain matters which may be vital
        to the Stale as a whole, such as industrialisation or exchange
        control? Another dimension in this financial issue is whether the
        Federation is a viable State if the main source of its finance does not
        belong to the nation as a whole but is controlled entirely by the
        Emirate of Abu Dhabi.
          The first dimension reduces to the question of whether he who
        pays the piper may call the tune. The Ruler of Abu Dhabi has become
        the Federation’s first President for two reasons: because his Emirate
        was and is by far the wealthiest and will for the foreseeable future
        provide the financial mainstay of the Stale, and because he was and
        is a fervent advocate of the Federation, demonstrating even before its
        formation his readiness for almost unlimited financial and political
        sacrifices on its behalf. Because he is so committed to the Federation
        it appeared not unreasonable for him to expect more spontaneous
        response to the central government’s authority, much in the way in
        which tribal loyalties used to be enhanced by financial incentives.
        The fact that this was not the case in a number of vital issues, such as
        immigration policy or defence, led to Shaikh Zayid’s threat in 1976
        not to accept a further term in office as President. In July 1976 the
        seven Rulers did not approve the draft of a permanent constitution
        which would have given the federal bodies very much greater
        authority and could have committed Dubai to contribute a larger
        share than before to the Federation’s revenues. In order not to be seen
        to cause the disintegration of the Federation, Shaikh Zayid did
        accept a second term in office as President. But the crisis could not
        fail to bring about concessions by the individual Rulers and local
        authorities which strengthened the federal authorities.
          While the federally-minded made little headway towards unifi­
        cation of armed forces or immigration policy, the issue of federal
        national ownership of the oil was dodged altogether. The Minister of
        Petroleum and Mineral Resources continued to act only with respect
        to Abu Dhabi’s resources, while Dubai and Sharjah remain to this
        day completely autonomous in their petroleum policy. The four
        northern Emirates, which in spite of incessant efforts have failed to
        become oil producers, question from their side the perpetuation of
        Article 23 of the Provisional Constitution which gives each Emirate
        the exclusive control over its resources, and they resent the vast
        sums of money which Abu Dhabi—although in the name of the
        UAE—gives in aid and as a means to secure friends internationally.

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