Reasons for optimism amongst the UAE's sadness

Sheikh Zayed bin Sultan Al Nahyan was a man with no enemies. He built a tolerant and well-structured, multi-cultural society in the UAE from scratch. As a result, this stable and secure place to do business in the often troubled Middle East, is now his legacy to the nation.

A smooth and seamless transfer of power to the next generation marked his final achievement. International observers have been impressed by the way the UAE has handled its internal affairs with none of the wrangling for power that some had predicted.

The new cabinet announced last week is significant, however. Business interests will note that key ministries have changed hands with the economic reformers in the ascendant, and the first female minister in the UAE's history.

This represents a strong evolutionary step towards reinforcing the UAE's status as a trading hub for the region, and engaging its massive oil wealth for the development of the country.

Let's not forget that the UAE holds 10% of the world's oil reserves, produces 2.5 million barrels of oil per day and has accumulated assets abroad estimated to be worth around $300 billion. It is actually the second largest institutional investor in the entire world, and ranks ahead of Egypt as the second largest economy in the Arab World.

Now combine this wealth with a commitment to creating the most modern economy in the Arab world and you really have to wonder at what the future holds.

Certainly present rates of growth can be maintained, and probably accelerated. Certainly there is no prospect of a real estate boom going bust for many years. Indeed, the UAE will increasingly become a model for other Arab states to follow. This is already happening but the trend will become even more pronounced.

One thing that is widely underestimated is the strength of the senior policymakers in the UAE, and that means the nationals and not the expatriates who nonetheless fulfil a vital role and will continue to do so.

The handling of events last week shows that the UAE has a very bright future, and that the Founder of the Nation's legacy will be well managed.