Issue 824 • 29 Febuary 2008

MBR means business in cabinet reshuffle

Mohammed Bin Rashid is stamping his mark on the UAE’s government, with a focus on efficient administration rather than political or market liberalisation.

Shifting sands on the political landscape are discernible in several aspects of the new UAE cabinet crafted by Vice President, Prime Minister and Ruler of Dubai Sheikh Mohammed Bin Rashid Al-Maktoum (MBR). The reshuffle, announced on 17 February, may win few cheers from advocates of market liberalisation or political reform, but probably will win approval among those who want to see the UAE government run along businesslike lines and forge closer ties in the global economy.

The ejection from the cabinet of former labour minister Dr Ali Bin Abdullah Al-Kaabi is significant: he was considered a progressive reformer who attempted to stamp out corruption and sloppy performance in his own ministry, an approach that led to several members of staff resigning. Kaabi also spoke out about UAE nationals who act as sponsors for foreign businesses and draw cash even though they don’t participate in their day-to-day running. Al-Kaabi also appeared genuinely committed to tackling the issue of poorly treated expatriate labourers, notably as a driving force behind the Abu Dhabi Dialogue for ministers from labour-sending and labour-receiving countries; this body strives to improve working and living conditions for low-paid expatriate workers. Among Al-Kaabi’s other reformist credentials, he is a keen supporter of moves to allow women to play a bigger role in politics and society.

But international criticism of the UAE’s labour conditions grew during Al-Kaabi’s tenure, while strikes at some of Dubai’s high-profile construction projects have hit the headlines. In this context, Al-Kaabi could be seen to be failing and his dismissal justified – but this minister, at least, seemed to be making efforts to improve conditions for labourers through dialogue.

Al-Kaabi’s successor Saqr Ghobash may take a tougher approach. He has been summoned home from Washington, where he has served as UAE ambassador since March 2006. Before that he was for eight years under secretary in the now defunct ministry of information and culture. For around 25 years previously his career evolved in and around the Ministry of Interior; Ghobash was closely involved in the introduction of digital finger printing and national identification cards; he became a police officer in 1973, and in 1985 he founded the police college in Abu Dhabi.

This reshuffle also ended the minister of state role focused specifically on political reform. The former minister of state for Federal National Council (FNC) affairs Mohammed Anwar Gargash becomes minister of state for foreign affairs. According to the official WAM news agency, Gargash is taking his FNC Affairs portfolio with him, but it is difficult to see how domestic political reform fits well with his new foreign affairs brief.

After the very limited December 2006 first elections to the FNC, complaints emerged (last April) that the government was pushing through legislation without reference to the consultative assembly. Gargash at that time appeared more focused on anti people-smuggling initiatives. It is thus difficult to see anything in the latest reshuffle that suggests the federation is ready to move far beyond the political process that emerged in 2006, when some 6,700 hand-picked voters selected 20 FNC representatives; the remaining 20 members were appointed by the emirates’ rulers – even though the UAE Constitution permits a popularly elected FNC.

Gargash replaces Mohammed Hussein Al-Shaali, after a brief two-year spell in the cabinet. Al-Shaali is a former UAE ambassador in Washington and UAE permanent representative to the UN European headquarters in Geneva.

Another departure is Dr Mohammed Saeed Al-Kindi, who hands over to new Environment and Water Minister Rashid Ahmed Bin Fahad. Unlike his predecessor, the new minister is a technocrat environmentalist, with a PhD in civil engineering (environmental health) from the UK’s University of Strathclyde. He is affiliated to the Zayed International Prize for the Environment, the world’s largest environmental prize.

There are more women

The reshuffled cabinet doubled the number of female ministers to four, and saw the introduction of three ministers of state without portfolio, including the two new women. None of the last three cabinets have had ministers of state without a specific brief, so this move may indicate a desire for cabinet flexibility on MBR’s part.

Two of these three floating ministers appear to have been selected on the basis that their skills fit with one of the themes of the reshuffle – which appears to be to strengthen and promote the UAE’s position in the global economy. New Minister of State Reem Ebrahim Al-Hashemi has been recalled from Washington, where she was deputy chief of mission in the UAE Embassy. She holds a bachelor’s degree in international relations and French from Tufts University in Massachusetts and has studied at Harvard University. She previously served in MBR’s Executive Office and has made accomplished television appearances as a UAE representative.

Another overseas emissary to be recalled is Minister of State Khalifa Bakheet Al-Falasi, the UAE’s first ambassador to Australia (where significant diplomatic strides have been made). Previously, he was under secretary in the Ministry of Education.

If two of the ministers of state without portfolio appear suited to developing international relations, Minister of State Maitha Salem Al-Shamsi’s role is less obvious. An academic, with a PhD in Sociology from Ain Shams University in Egypt, she was the UAE University’s deputy director of scientific research, director of its Centre for Research and Foreign Consultations and chaired the Scientific Research Board.

Sheikha Lubna’s new remit

The two women to retain cabinet positions are Social Affairs Minister Maryam Al-Rumi and the generally well-liked Sheikha Lubna Al-Qasimi, who has been moved from the economy ministry to head the newly formed Ministry of Foreign Trade. The decision to move Sheikh Lubna is difficult to read. The foreign trade portfolio suits her skills and she is passionate about the concept of free trade agreements (FTAs) – all of which resonates with the reshuffle’s outward looking theme.

But for all her strengths, Sheikha Lubna appeared not to get to grips with aspects of the UAE economy, notably by finding no way to control the spiralling rate of inflation. One attempt to control inflation by ending the agency system (by which companies enjoy monopoly or oligopoly rights to import items) met with fierce resistance. Eventually she was able to amend agency rights on some items, especially foodstuffs, but on cars, for example, deep-rooted business interests seem to have prevailed. She was also thwarted in her attempts to push through new companies laws that proposed abolishing the 49% ceiling on foreign ownership outside free and special zones. Even negotiations for a US/UAE FTA ran into the sand when they were not concluded before passing a key deadline.

New Economy Minister Sultan Bin Saeed Al-Mansouri makes a habit out of heading ministries due to be disbanded. He headed the former ministry of government sector development, before which he was at communications, disbanded in MBR’s February 2006 reshuffle.

More ups and downs

MBR has promoted one of his closest aides, Cabinet Affairs Minister Mohammed Gergawi, who retains the portfolio he managed as a secretary of state. His ministry is taking the work previously undertaken by the ministry for government sector development.

Veteran banker Dr Mohammed Khalfan Bin Kharbash is no longer minister of state for financial and industrial affairs, which has been disbanded. Responsibility for industrial affairs goes to the Ministry of Economy. In what could be a very significant change of personnel, Kharbash’s de facto successor is Minister of State for Financial Affairs Obaid Humaid Al-Tayer. A well known Dubai mogul, he is chairman of the influential Dubai Chamber of Commerce and Industry and head of the Tayer Group of companies, a massive conglomerate with interests ranging from vehicle imports to the media (the group’s Al-Nisr Publishing publishes the English language daily Gulf News). Since a substantial slice of the family business is founded on the agency system, Al-Tayer hardly seems likely to be a keen supporter of the kind of market liberalisation proposals put forward by Sheikha Lubna. He will be working alongside MBR’s brother, Finance Minister Sheikh Hamdan Bin Rashid Al-Maktoum.

Another notable aspect of the reshuffle is that most of the top cabinet positions have been untouched – the foreign affairs, defence, interior, finance, public works, education, defence and energy ministers remain – while none of Abu Dhabi’s ruling Al-Nahayan family nor Dubai’s ruling Al-Maktoum family have been promoted, demoted or sacked from the cabinet.