Mohammad: Standing up for the nation

Qualities of leadership are unquestionably best seen when a given environment allows individuals to stride for achievements. Yet it is the most difficult of times that enables them to unveil their true leadership characteristics.

In pictures: Glimpses of a leader

Such are the times of challenges, difficulties, and ones that are filled with testing obstacles. And it is those times that shape the perseverance of people.

In history, defining moments are governed by the circumstances as much as how they have been tackled by those in power and positions of responsibility.

The financial crisis that engulfed the global economy over the past three years brought about widespread uncertainty and instability in many countries. The UAE was no exception in being affected by the crisis. Yet the decisions taken by the country's leadership during that time became one of those defining moments in the nation's history.

Steering the UAE to safety could not have been possible without the guidance of President His Highness Shaikh Khalifa Bin Zayed Al Nahyan and the directives and supervision of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Series of measures

During the downturn, a series of measures taken by the authorities gave indications of a high level of commitment and leadership. Towards the end of 2008, Shaikh Mohammad pointed to the importance of focusing on development projects that are being carried out by both the public and private sectors.

Soon after, the meeting of the Financial and Economic Committee focused on the federal budget for fiscal year 2009. This was more a meeting that defined priorities and hence expenditures — one which signalled to the federal ministries and authorities that budgets should be set within the context of the downturn.

Support

Yet one of the most significant and crucial measures taken then was the injection of Dh120 billion in liquidity into the banking sector in 2009 following the directives of Shaikh Khalifa. Not only was an umbrella coverage offered to local banks, but a safety net also included branches of foreign banks in the country.

This was definitely unprecedented and sent out signals of assurance not only to the financial and business sectors, but also to the people at large.

In his address to the Federal National Council, Shaikh Khalifa said that despite the international financial crisis, the country's economy was on a firm footing. "We are confident that the steps and measures that we have taken so far will help our economy regain the initiative and continue the march of growth and construction with greater confidence and zeal," he said.

In addition, it was no secret that Dubai was affected more so by the crisis given the large scale construction projects and development plans which were underway for a number of years.

Under attack

It was during this time that Dubai came under a barrage of attacks that ridiculed and downplayed its projects. The negativity of these attacks was harsh to the extent that the emirate's very existence as a trading hub came into question. The attacks came across like an orchestrated smear campaign of hatred and revenge.

"It is unfair to reduce the Dubai experience to the real estate projects as the Dubai development success story is large, deep and diversified in regard to the strategy," Shaikh Mohammad said at the time. He also pointed to the fabric of unity that binds together Dubai with Abu Dhabi and the rest of the emirates.

Additional realistic measures to address the repercussions of the crisis followed. In December 2009 the Dubai Supreme Fiscal Committee began its talks with banks regarding the restructuring of Dubai World's burden of $26 billion debt. Although the process was tedious, a final agreement was reached with the majority of those involved. In late 2010, the government followed through with the same vigour to address the situation with Dubai Holding.

Measures on the federal level

In 2010, tackling the federal budget with the economic situation in mind was high on the agenda. Shaikh Mohammad unveiled the UAE government's federal strategy for 2011-2013 which comprised priorities that focused on development in key social, cultural and economic sectors.

A zero-based federal budget of Dh122 billion which will run from 2011 to 2013 for the first time was approved by the Cabinet.

Development projects for the northern emirates have become one of the key initiatives for the country driven by the directives of Shaikh Khalifa and under the leadership of Shaikh Mohammad. The allocation of Dh4 billion for the infrastructure of Fujairah was one of many examples.

Perhaps it is this confidence in moving forward that made Shaikh Mohammad state last year: "Dubai and ... Abu Dhabi and the rest of the emirates are fine. We know it's a recession, we know it's a challenge and we're dealing with it".