The United Arab Emirates has laid down a 400 km pipeline from Habshan fields in Abu Dhabi to Fujairah terminal on the Gulf of Oman, which has the capacity of exporting 2 million barrels oil per day to Asian markets in case of any disruption in its shipment from the Strait of Hormuz.
This was stated by an official of the Fujairah government while talking to journalists from different countries, who were there at the invitation of National Media Council to attend 41th anniversary celebrations of UAE National Day. The day was celrebrated across the country on Sunday as Emiratis hung national flags at their residences showing their patriotism.
The UAE has started using the new pipeline in July this year, which was constructed by China from which three fourth of the country’s production of oil can be exported, which is about 2 million barrels a day. The UAE is also increasing Fujairah’s storage and off-loading capacities.
The country has spent about $200 million on laying the oil pipeline for having an alternate route to export its major source of revenue for sustaining current level of economic progress, which has a vital importance for realizing the vision of its late leader Shaikh Zayed bin Sultan Al Nayhan.
The Strait of Hormuz is a strait between the Gulf of Oman and the Persian Gulf providing the only sea route from the Persian Gulf to the open ocean from where at least 20 per cent of the world’s petroleum and about 30 per cent of the petroleum passed by the sea giving it an important strategic location. Journalists from all over the world were bused from Abu Dhabi to Dubai to visit the tallest building of the world, Burj Khalifa, which had emerged a tourist destination because of its serenity and peaceful ambience in the presence of its nicely built apartments and restaurants.
At the top of Burj Khalifa, they were able to capture a spectacular view of the sprawling city of Dubai, which had successfully grappled with 2009 crisis in the housing sector following a massive financial assistance from Abu Dhabi. After their sojourn to Dubai, they travelled to Fujairah- one of the states of UAE with 200,000 population while its 80 per cent area was covered by the rugged mountains. However, its location is very important for future of the country’s trade and commerce.
The laying of a new pipline was a significant step in the country’s bid for ensuring a sustained progress and development for its people hence its lederaship had taken steps both short-term and long term for ensuring political and economic stability.
Perhaps that was the reason that despite turmoil sweeping across the Arab world, the UAE remains an island of stability. The secret behind its rapid progress a a futuristic outlook of its leadreship with a commitment to lay solid basis for a knowledge- based economy, massive drive for diversification of its economy and UAE’s geo-strageic location makiing it a hub of wrold’s trading companies.
All these companies are keen to exports their goods to expanding markets of two billion people lying just within four hours travelling time. It sits at the crossroads of Asia, the Middle East, Africa amd Europe which connect buyers with mercahnats and suppliers in different sectors, who could quickly supply their goods to consumer markets in these regions.
The UAE’s econmoy has some unique features as besides providing the best possible investor-freindly environment, its high oil-based income gives a guarntee against market turbulences in many aspects while its efforts to diversify the economy has won it trust of foreign and local investors.
The head of the Middle East and North Africa Department at the International Monetary Fund had declared in August 2011 that the UAE economy had been steadily performing positively and had continued to attract direct foreign investment, which indicated confidence of investors in its economy. In 2008 Dubai had emreged the top global destination for investors and had attarcted $21 billion of investment capital to rich base of project and opportunities.