UAE ministers pledge to take energy, trade and defence to the next level

0:00 Once again, good afternoon everybody.

0:01 My name is Hadley Gamble.

0:02 I am the chief international anchor for imi and it

0:05 is thrilled for me to be joining these gentlemen here today.

0:08 Um your excellency um I want to kick off with you UAE

0:14 60 years a member of OPEC that ended just a few days ago.

0:18 How are you feeling?

0:22 Well, uh is it freedom?

0:23 speaker.

0:24 Okay.

0:25 Well, hardly again this is this is a sovereign decision that was taken after

0:32 a very careful look at our uh whole

0:36 uh strategies including made it in the Emirates.

0:41 So what does this uh decision do to the materials

0:46 that our industries need here in the in the UAE?

0:50 we will have a sense of freedom to produce

0:52 what we require uh without joining any group.

0:58 Uh and that will give us a um a sense of uh planning,

1:06 [cough] a a sense of uh decision making when it comes

1:10 to prioritizing our uh products that goes to the different industries.

1:17 And as you know uh Adno and uh its group of companies

1:21 have been instrumental in enabling

1:24 the industrial sector through the worldclass products

1:29 throughout the value chain of uh of oil and gas that is

1:34 that has been instrumental in getting us to where we are today.

1:38 The future uh is going to be more prosperous for us.

1:43 We look forward to grow our industrial uh base

1:48 to become something that the whole world will will

1:52 need more and having that flexibility is going

1:56 to enable us and strengthen the maid in the Emirates.

2:01 US President Donald Trump has said that this is a good decision by the UAE,

2:05 but we haven't heard anything officially from OPEC nor from Saudi Arabia.

2:10 And those of us who follow energy markets might find that a bit surprising.

2:14 Is this the calm before the storm?

2:17 No, I think I think this is not the first

2:19 time that a member country uh exit the group.

2:23 It happened before and the group has been relatively uh calm about it.

2:30 That's everyone realized that this is a sovereign decision.

2:34 Everyone realize that UAE will be as well and as we said a responsible producer.

2:43 We're not new to this market.

2:45 We understand it.

2:46 We will always be acting responsibly and we will uh be

2:53 as an individual producer uh hopefully a an enabler for growth.

3:00 Hopefully we will contribute as well uh to the world stability

3:07 between supply and demand and uh I'm confident that we will be

3:12 working with so many nations including the uh the members of OPIC

3:17 and OPEC plus but bilaterally rather than as part of a group.

3:22 So you left on good terms.

3:23 We left in a good term uh and uh as I

3:26 said we are a responsible producer and we have investors here.

3:32 We're dealing with uh with many of the uh worldclass industrial countries

3:39 that are dependent on us and we owe it to those partners who

3:45 elected to invest in the UAE to produce what the world requires

3:50 without restrictions uh with collaboration of course

3:55 with the all the other producers.

3:57 Um and we will gauge our engagements based

4:01 on uh the requirements of the market as well as based on what we need to produce

4:08 for our local industries here in the Emirates.

4:12 Tell me this.

4:12 Um Iran isn't going away and um you

4:15 know as we've heard earlier this morning from Dr.

4:18 Sultan, the best way to protect yourself is to plan ahead.

4:22 In your mind, what is the best case scenario?

4:26 Well uh the best case scenario that no one should be allowed

4:32 to control the straight of hormones keep it that is the best

4:37 case scenario and we're hoping that the whole world will realize

4:41 the impact of that that a one single country or one single group

4:48 of uh I don't want to I don't want to call them

4:52 names but that group definitely is not structured nor looking at the future

4:58 of the world nor looking at the impact to the poor

5:02 people in all over the world who are dependent on these commodities.

5:09 The shock in the market is something that is impacting the poor nations.

5:14 The shock in the energy is impacting the consumers and it's not

5:20 just something that is impacting the Gulf States or us in the UAE.

5:25 So that's the best case scenario.

5:27 No one should be allowed to control the state of homes.

5:31 And finally, do you still have confidence that Donald

5:33 Trump will be able to solve this issue?

5:37 Uh we have uh a great relationship

5:39 with the United States uh with President Trump.

5:43 Uh I think uh I think the United States

5:46 and and many other countries are trying to uh

5:50 ensure that the control of the state of Hormuz

5:56 is kept outside the hands of the uh of this uh group that is that has been

6:04 terrorizing uh civilians all over uh the Gulf States

6:10 and other nations as Your excellency bin I want

6:13 to ask you specifically about the defense case for the UAE.

6:17 Um in your mind is the UAE prepared to defend itself.

6:22 It's not well I think UAE have defended itself.

6:27 We're so proud not only us as nationals but everyone who lived among us.

6:35 Everyone who lived here in this country practicing

6:39 their usual going to restaurants, going to cinemas,

6:43 going to work have seen the capabilities of our heroes at the armed forces.

6:52 We did defend ourself and UAE has a history even before

6:59 the formation of uh of uh of of the country of defending itself.

7:04 We're tough when it comes to defending our families and whoever lives with us.

7:10 So I have no doubt of our capabilities,

7:13 but those capabilities we've made it in the Emirates will go to the next level.

7:17 We need to go to the next level.

7:19 Speaking of going to the next level, um talking about the defense capability,

7:23 um in terms of the what's designed and produced here at home,

7:26 in your mind, how quickly are we going to see a ramp up in production?

7:31 It's interesting.

7:31 When edge was created around 6 and a half years ago,

7:35 there were some doubters outside that felt

7:38 yeah maybe this is just a cosmetic activity.

7:42 Uh we will continue to buy everything from outside.

7:46 The real defense capabilities will come from outside and local

7:49 capabilities will be just a an accessory on the side.

7:54 I think I'm proudly saying that during the last war like no other

7:59 time the local defense industrial capability

8:04 truly proved its worth during this war.

8:08 A critical part of the defense of the UAE

8:11 was defended using UAE national products produced in the UEE,

8:17 developed in the UEE and they played a pivotal part

8:19 in the defense of the entire network here of the UEE.

8:23 So this is a clear demonstration that we are able to develop,

8:27 we're able to produce and we're able

8:29 to show its worth during the time that matters.

8:34 And I think with the the current war uh whatever work we were doing before

8:40 is going to be 100xed in the coming

8:43 period in terms of accelerating further our capability,

8:46 accelerating further what we do.

8:48 Uh and I think um no one likes war but I think it was

8:53 a great example of showing what truly

8:56 the local capabilities are during this war.

8:59 Tell me about that in terms of the numbers

9:01 in terms of that production and that capability.

9:03 what specific areas.

9:05 So let's use a relevant example that we all understand.

9:11 Uh UAE was targeted with missiles and drones and a large quantity of drones

9:18 thousand plus drones came to the country way way more than anyone else.

9:24 uh 85% of these drones were tackled through

9:31 the jammers developed and produced in the UAE.

9:35 So this is a significant number of the attack

9:38 that came in the UAE were neutralized using UEE technology.

9:43 This is one example among many.

9:45 Uh other examples of what we were able to do.

9:50 Yes, we had products that we produced before the war that truly

9:53 show it's one thing for these products to be tried outside.

9:57 It's another thing for these products to be used in defending the nation.

10:00 It has a different lens to it.

10:04 uh other products were also used in in various

10:07 areas including products that did not exist

10:12 and I think this is an interesting area before

10:16 the war day zero certain products did not exist.

10:21 Day 30 these products entered operation.

10:25 Normally these products would have taken us two years of development.

10:30 They took 15 days of development and another 15 days to be used operationally.

10:35 This shows that you now have true local national capabilities.

10:41 It's not just a matter of okay,

10:43 we'll develop some things but true national capabilities.

10:47 Internally, we were surprised.

10:49 So, my team knew that after this war, whatever two-year development programs are

10:55 on the table for other things are scratched.

10:57 Now, the deadline is a two-eek deadline for a two-year program.

11:00 [laughter] Tell me though, in terms of the numbers specifically,

11:03 how quickly do you want to get um that breakdown to increase?

11:07 And I'm talking about are we going to see a scenario in which 80%

11:10 of the weapons used to defend the UAE are made right here in the UAE?

11:14 I think if you break the the products to a number of categories

11:19 there is air defense capabilities there is the general air force capabilities

11:24 the the the planes and then there is the rest of of the ecosystem

11:29 whether it's ships whether it's guns whether

11:30 it's it's other ammunitions I think today

11:34 as as as a player we take a very reasonable share except from uh

11:40 fighters we don't develop fighters yet uh Uh I think at the same time

11:45 when it comes to air defense the soft kill air defense the jammers

11:49 that came in play we are now

11:51 fully self-sufficient as a country in that category.

11:55 When it comes to the air defense area between this year and next year will

12:00 start eating part of the missile air defense

12:02 will become local UE air defense and I think over the next few years we

12:07 definitely have a determination that anything to do

12:10 with air defense will be fully a UE

12:12 capability in that regard produced in the UAE.

12:16 Um so I don't think it's anymore whether it's

12:20 if I don't think it's anymore whether it's will.

12:23 I think it's very clear what was done in the last few years and whatever

12:27 was done is now going to be 100xed to grow and and grow our capabilities.

12:31 I know you were recently in the United States.

12:33 You were meeting with various companies.

12:34 I know you met with Elon Musk.

12:36 Um any insight in terms of the partnerships that you're working on?

12:40 I would say stay tuned uh for a few interesting uh announcements but let's

12:46 give a a small antidote in terms of where we are as a capability.

12:51 It's one thing when you are developing something in the country

12:54 and you're consumed locally because there

12:58 is support to consume the local product.

13:01 And that happens in every country.

13:03 And people might say, well,

13:06 if you're a local player and you're consumed locally,

13:08 maybe there's some favoritism just to use your product instead of international.

13:13 Although in defense, it doesn't really work that way.

13:15 But let's take that for an argument.

13:18 Six years ago when edge was created the companies

13:22 that came together the inter annual international booked orders for edge

13:29 was 2% 6 years ago 6 and a half years

13:32 ago to be more accurate 3 years ago was 25%.

13:38 Two years ago was 50%.

13:41 Last year was 70%.

13:44 It means the product developed in the UAE in an annual

13:49 booked orders that we have last year 70% was international orders.

13:54 So this tells you where we sit today from a capability

13:57 point of view and how determined are we to really

14:00 excel in that domain and really defend the nation and become

14:04 a key player in the global advanced tech space and defensive.

14:07 So, we've heard energy security, we've heard defense capability,

14:10 and I now want to talk about putting um all of that money to work.

14:14 And we talked about the foreign trade profile.

14:16 In your mind, how is that going to evolve um post Iran war?

14:20 First of all, we had an excellent growth in the last uh few years.

14:24 And last year, we outperform as well.

14:26 Although we had 12 days of uh attack last year and during the summer,

14:30 which did not disturb the overall growth that we have.

14:34 uh last year we exceeded 1 billion uh uh

14:36 trillion1 trillion dollar uh with a growth of around 27%.

14:41 Uh the the majority uh went toward the I mean

14:45 the majority of the growth went to toward the ex

14:48 the exports and the exports to the countries which we signals

14:52 with uh exceeded the the expectations with with the massive growth.

14:57 The first quarter of this year was

14:58 as well continuation of this outperforming performance.

15:01 Uh we had an excellent growth as well.

15:04 Even with the whole disturbance,

15:05 everyone thought s we're going to go to the to the minus

15:08 but we ended up the first quarter with the growth much

15:11 higher than the growth last year which shows a very positive uh

15:15 uh signal that we're going to continue regardless what's going to happen.

15:17 And the resilience and the agility

15:19 of the systems and the different policies that we

15:21 have developed throughout the last few decades is

15:24 paying off uh through the foreign trade numbers.

15:27 Now tra trade is not about only the the numbers.

15:30 It's about supply chain.

15:32 It's about industry.

15:32 It's about ensuring the availability of commodities with reasonable

15:36 prices in the in the in the country.

15:39 And um this is a very long story and very long uh

15:43 uh journey which we have uh taken in the last three decades

15:46 in term of the investments in our uh air cargo investments

15:49 and the transportation when it comes

15:50 to ports uh infrastructure and the connectivities

15:53 from those ports to the UE and vice versa from the UE

15:56 to the rest of the world and as well the investments

15:58 in the logistical railways and uh the the uh the roads and bridges

16:03 which which manage to uh reduce the consequences of the the supply chain.

16:08 disturbance because of the the attack against us.

16:12 Now, in ter of the numbers,

16:14 we're connected to more than 250 ports around the world.

16:18 We're we're owning more than 330 vessels uh by our operators and that makes us

16:25 much more agile to maneuver around

16:28 the the challenges that is facing the the globe.

16:30 Now uh when it [clears throat] comes to as well the agilityities we managed

16:34 to shift many operation from the Arabian Gulfs to the Gulf of Oman especially

16:40 in Fujer and Horvfakan and they managed to move in many of the commodities

16:44 and guess what as well the airport the airlines played a major role in reducing

16:49 the consequences the growth in some of the airlines were in above 30%

16:53 in some of the cases which means that we managed to shift and do

16:57 that shift easily because of the the readiness as well as the taking different

17:02 scenarios in daily operation so to reduce

17:05 the consequences of such incidents that we have

17:08 and global financial institutions are curious to know

17:11 whether or not we're going to see

17:12 sovereign wealth funds um redirecting if you will

17:16 some of those funds back into the UAE.

17:18 Do you anticipate that will happen?

17:20 Well, it's already happening and it's it's

17:23 a very long strategy policy that we have.

17:25 We invest abroad.

17:26 We build up the technology.

17:28 We build up the knowhow and bring it to to the country and we

17:32 have done it and we have done it as well in the defense

17:34 edge is one of the the the models bringing those international partnerships

17:38 to the country to build up certain uh sectors within within the country.

17:42 Now moving forward for sure we're going to continue our international

17:45 investments but also we're going

17:46 to have a huge investments internally regardless

17:49 it's going to be through the sovereign world funds or directly

17:52 by the investment by the governments

17:54 but the infrastructure the strategic projects development

17:56 projects are going to be a key uh priority for the the country

18:00 moving forward and many of projects will be announced very

18:03 soon just to make sure that we're we're contining the momentum

18:05 and we're not going to be as well uh dependent in any countries.

18:09 Do you anticipate we're going to see stimulus packages?

18:11 We we started with that but the the the upcoming projects

18:15 is going to be directly uh invest direct investments by the governments

18:18 different entities regardless of federal or local and that's going

18:21 to as well boost the internal uh domestic uh public private partnership.

18:26 There were conversations obviously being had between

18:28 the UAE and the United States about

18:29 US dollar swaps that was characterized by many in the media as a bailout.

18:34 Um in your mind um how would you describe that?

18:37 Um and also if you would just kind

18:40 of walk us through where you are in that conversation.

18:42 Well, we had this uh discussion and conversation with Benny.

18:46 It's part of an elite group that the US is having this swab uh policy with.

18:52 It's only have they're having only with five countries Canada,

18:55 Europe, UK, Switzerland and Japan.

18:59 And being part of that means the transactions and the instance

19:03 uh trade investments between both nations reach a level

19:06 where that's that swap is highly needed in to just

19:09 make sure that we capture the the second our transaction.

19:13 So it's an elite uh matter.

19:15 It's not about uh bailing out any any of the the talks

19:19 that we're seeing seeing or hearing in the social media

19:22 and you've secured this line with under discussion under discussion.

19:27 um your excellency just to to sort of walk us through

19:29 this um what are your kind of biggest fears on the horizon?

19:33 Is it the supply and demand question?

19:36 Is it the idea that postconlict we're going to see a price war?

19:40 Where do you think that we're headed?

19:42 No, I don't think I [clears throat] think the biggest concern today is

19:46 one the security and to of of of ships moving freely throughout all

19:56 of the the of those restricted u uh straits all over the world everywhere it's

20:04 it's given except for the straight of Hormuz

20:07 except of what Iran is trying to do.

20:10 So that's that's a risk.

20:13 Now that risk since it happened it had drawn the reserve or the strategic

20:19 reserve inventories down and that is the second concern that needs refill.

20:27 So in addition to bringing back enough production to the world,

20:34 we need someone need to produce to to fill up those strategic reserves.

20:42 But if we are not ensuring that this is not happening again then that risk

20:48 is there and countries will start piling

20:51 up their level of inventories to another level.

20:55 And I don't know uh we remember we all remember when the United

20:59 States strategic reserve levels were way higher

21:04 maybe double of what we have today.

21:07 Is that going to change?

21:08 We will see.

21:09 That's why it's so important for countries like the United States,

21:13 all of us here in the Gulf that this straight is kept open

21:19 without possibility that Iran is coming and or or the the revolutionary

21:26 guard coming and blocking it again after time.

21:31 It needs to be subtle.

21:33 Those two will demand more production.

21:37 So the world will need more energy period.

21:40 There has been a growth on demand.

21:42 Now you add to it the inventory story.

21:46 You need more from where that additional volume is going to come.

21:53 We will need more production.

21:56 When those who are responsible producers, they will gauge.

22:01 They will not flood the market.

22:03 they will produce wisely to ensure that we are taking care of those two things.

22:08 One is the the daily uh requirements of the of the demand.

22:14 Second is enough is attributed to filling up those strategic reserves worldwide.

22:23 And within that um narrative,

22:26 US energy dominance um in your mind um you say responsible producers.

22:31 Is the United States a responsible producer?

22:34 Well, every country uh hardly have their own

22:37 strategy when it comes to fulfilling their production,

22:42 their their demand from their local production.

22:44 And I think that's that's the story for the United States shale oil producers.

22:50 When the United States consumes that much

22:54 and only before the shale oil it was only

22:58 40 30% 40% of that is is is is uh supplied locally then you have an issue.

23:05 I think the shale oil production has been a revolution that the whole world

23:10 benefited from because it balanced the the um

23:13 the the supply of the United States.

23:16 It gives them energy security.

23:18 It gives them dominance when it comes to supplying

23:21 their requirements and that's a right for every country.

23:26 We're doing it many countries are doing it for their economy.

23:30 Now what is the future?

23:34 If this is a finite resources it will with time it will go down.

23:39 So you have to produce it wisely and you have

23:42 to produce it when you have it and we are complimenting

23:46 each other in this in this uh term because the whole

23:50 world needs the economy of the United States to be strong.

23:55 Many are benefiting from that economy and we are we are a major investor there.

24:00 So that economy supplied by that amount of crude have helped many countries.

24:07 Your excellencies, thank you so much for joining us.

24:13 Thank