�Although there is no attempt at long-term, coordinated development planning, three main objectives have guided federal government spending. These include strengthening the federation�s physical infrastructure and social services network, diversifying the economy, and expanding entrepot trade (Held 237).�
With the dramatic push toward free market economics and prioritization of capital, the UAE is becoming a major player in the world economy. �The federal government promotes open and free trade as an official policy, and a thriving source of income and full employment has resulted. (�Persian� 238)
To begin with, the country works to maintain friendly diplomatic relations with neighboring countries Iran and Saudi Arabia, former protectorate Britain, and close ally the U.S. Strategic alliances allow the UAE to rely on British assistance in crisis and maintain close private commercial ties and friendly government relations with the U.S. �The UAE has put diplomatic emphasis on the GFF and regionally on the Arab League (Held 406).�
Such relations are not merely diplomatic moves, but strategic economic planning. The UAE is rocketing into the world economy. In 1995 the country joined the World Trade Organization. Since 1998 the ADCCI has organized countless trade fairs and has participated in fairs like the Cairo International Fair, the Lisbon International Expo Fair, the Second UAE Exhibition in Beirut and the Baghdad International Exhibition. (UAE) �In addition, during 1998 the chamber received 39 international trade delegations and official delegations from the ADCCI visited Oman, India, Taiwan, Britain, Thailand, Malaysia, Sing a pore, Australia, Finland, Sweden, Norway and Denmark, to promote Abu Dhabi as an investment opportunity (UAE).�
The government is also working to ease the processes involved in international trade. The Abu Dhabi Municipality �one-stop-shop� is simplifying and expediting procedures for issue of trade licenses by creating a multi-departmental office that holds representatives from various offices. By 1999 applications for commercial licenses sent by e-mail were processed within four hours, instead of three to four months. Dubai has also been streamlining its administrative procedures to provide an efficient service for investors. Improvements include telephone and fax hotlines and 24-hour computerized systems, operating in Arabic and English, which can handle enquiries about documents needed for all types of visas. (UAE)
Also, unlike Saudi Arabia, the UAE has become a desirable location for foreign investors thanks to an increased number of free zones and protection of industrial rights. The free zones offer numerous options to investors, including 100 percent ownership of investments. (UAE) �The UAE is a member of the Paris Convention for the Protection of Industrial Property, the World Intellectual Property Organization, and a signatory of the WTO Agreement on Trade - Related Aspects of Intellectual Property with which it must comply by the year 2000. The latter deals with such issues as copyright, trademarks, patents, industrial designs and trade secrets. The country also acceded to the International Patent Cooperation Treaty in 1998, which protects inventions registered with the International Bureau at WIPO and local patent offices (UAE).�
The UAE has now increased overseas assets so dramatically that they substantially support government expenditures. �[The UAE government deficit] has stayed under control as it has been financed through return from the country's massive overseas assets (�Federal Budget�).�
Finally, the UAE government has emphasized responsible distribution of revenues and efficient and productive government work. Unlike the Saudi government, which remains largely devoted to the royal family and traditionally disperses funds, the UAE has transformed its budget system according to modern international practice. �According to the Ministry, the new budget system involves switching from a traditional budget terms and chapters to a programs and performance federal budget in common with international practice (�New Federal�).� The most recent budget update allocated funds on the basis of performance to ensure efficiency and productivity, minimizing waste and undeserved payment. �This approach stresses that expenditure management is about appropriate policies in the medium term instead of cash management in the short term. It noted that the new system allows for the achievement of economic and fiscal goals and at the same time ensures measurement of efficiency and performance. This means the focus is on spending results rather than the money spent or what money has bought (�New Federal�).�
Further, unlike the Saudi government, which has been accused of squandering revenue on salaries and government services, the UAE government continues to make budget cuts on those very luxuries. �The cuts covered most sectors in that category, including wages and salaries, payments on goods and services for the federal government, ministry allocations, subsidies and transfers and foreign grants (�Federal Budget�).�
In conclusion, while Saudi Arabia reports a 13 percent unemployment rate among Saudi nationals alone and still reports a US$176 billion public debt, the UAE continues to thrive, reporting no substantial unemployment or public debt. (EIA) The Saudi government has held out for another oil boom since the 1970s, rather than implementing reforms stressing free markets, access to capital, and integration into the world economy. Saudi Arabia is now behind and will require major restructuring and reforms to bring it back into the game. The UAE, on the other hand, has taken steps to expand its economy, invest in capital and integrate into the world economy. The country�s determination to become a world player has propelled it to action, stimulating more successful economic development strategies than Saudi Arabia.