The United Arab Emirates have recently signed a weapons contract worth close to $US 6.5 million at IDEX 2009. Most people would ask why the UAE need such expensive state-of-the-art weapons. The answer lies deep within Washington’s foreign policy and U.S.-Iran relations. The emirates are located along the Strait of Hormuz. It is a vital chokepoint through which millions of barrels of oil pass everyday. On one side of the Strait are the UAE, on the other is Iran. Looking at the map, it becomes no wonder that the U.S. has an interest in this small, yet very relevant part of the Middle East. In addition, Saudi oil being shipped stateside travels through the Persian Gulf, the Strait of Hormuz, and then into the Gulf of Oman, the Arabian Sea and into the Indian Ocean.

Washington has invested a lot of money into securing the Strait of Hormuz. This includes putting sanctions on Iran and doing its best to keep it from having any say in operations in the Strait of Hormuz and the surrounding waters. To illustrate just how important the UAE see the security of the Strait of Hormuz, let’s take a look at some statistics provided by NationMaster:

Air force personnel 4,000
Armed forces personnel 65,000
Army personnel 59,000
Branches
United Arab Emirates Armed Forces: Army, Navy (includes Marines), Air Force and Air Defense, National Coast Guard
Conscription No conscription (AI).
Conventional arms exports $US 3,000,000.00
Conventional arms imports $US 1,246,000,000.00
expenditure > % of GDP 1.93 %
Expenditures 3.1 % of GDP
Expenditures > Dollar figure $US 1,600,000,000.00

For a country the size of the UAE, this is a large commitment to keep peace. Considering that the UAE do not really get involved in conflicts, it spends a lot of money on keeping such a small army up to date.

The UAE are actually really concerned about Iran becoming more powerful because then it will raise an ideological base in the emirates, causing foreign investors to leave. In 2002, the UAE had attracted around $US 3 billion of foreign investment. In 2005, that number was already at $US 12 billion. Some estimate that FDI in the emirates is around $US 19 billion. This growth is staggering and provides has made the UAE one of the top foreign investments hubs in the Middle East.

The UAE do not want this investment to go away and they want to have a firm hold on their wealth. However, an arms race in any region has generally meant a rise to hostilities. Although the UAE do not have a force strong enough to fight off Iran or to provide a formidable military to counter that of Iran in case security of the Strait of Hormuz is threatened, the emirates do have Washington’s backing. The UAE have agreements in place with the United States that allow for collaboration and American involvement on the ground of national interests in case the Strait of Hormuz is threatened.

Although this is small news, and seems insignificant due to the UAE not being a big international player, the fact that it is building up its military and investing heavily in national defense prompts Iran to do the same to have a balance of forces in the region. The fact that there are U.S. Air Force bases in the UAE and other bases that are ready to accept an expeditionary force of U.S. personnel only makes Iran more nervous. In turn, this makes a conflict between Iran and U.S. more likely because Washington deems the Strait of Hormuz as a chokepoint and in America’s national interests to keep it secure.