The United Arab Emirates in general, and Abu Dhabi in particular, have long and well-established relations with Britain that date back for nearly 200 years, since the signing of the first treaties between the Rulers of the Emirates and Britain in January 1820. Since the establishment of the United Arab Emirates in 1971, the political relationship between the two sides has taken on a new form, developing into a relationship of equals and partners who work together for mutual benefit. This is a relationship that the UAE side is keen to see further develop in the future.

At the same time, many British companies have played their part in the foundation of the UAE and its economy, particularly that of Abu Dhabi. The origins of our oil industry date back to the initial exploration undertaken by firms like BP and Shell. Our initial town planning was undertaken by another British firm, Halcrows, while many British expatriates have spent many years working in different sectors of the economy. Many have lived here for decades, and some have chosen to be buried in the UAE.

Today, however, we are entering on a new phase of our relationship. Over the last two or three years, Abu Dhabi has embarked upon a radical transformation of its government structure and of its economy. Building on the foundations created by the UAE's founder-President, His Highness Sheikh Zayed bin Sultan Al Nahyan, and in accordance with the guidance provided by President His Highness Sheikh Khalifa bin Zayed Al Nahyan, now being implemented on the directions of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, we have set about implementing changes that are intended to revolutionise the way in which Abu Dhabi operates.

First, we are engaged in a restructuring of the machinery of government with two basic objectives.

One is to ensure that Government focusses on its core responsibilities, and divests itself of aspects which are better handled by the private sector. Examples of this include the privatisation of the water and electricity sector, followed by that of the responsibility for waste collection and disposal and of the management of the extensive plantations and parks that can be found throughout the Emirate.

The second is to ensure that in those areas where Government retains responsibility, its machinery is revised and updated to ensure that it can deliver to the population of the Emirate high quality services, compatible with international standards, yet at a reasonable cost. The reforms now under way in, for example, the health service and the police service, are but two examples of this new approach.

Within this overall framework, there has also been a new focus on the further diversification of Abu Dhabi's economy. Oil and gas will, of course, continue to provide the basic underpinning for the economy, and are likely to do so for many years to come. Indeed, current planning for new developments in the oil and gas industry, both the expansion of capacity from existing fields and the development of new reserves, will ensure that this key sector of our economy continues to thrive.

We cannot, however, permit ourselves to tie the future health of our economy to these depletable resources. One day - and it may be many decades ahead - we will have to address the challenge posed by declining reserves and production, and it is better for us, and for our children, that we begin to address that issue now. One way in which we are doing that is through the Masdar Initiative, through which we are leveraging our substantial resources and expertise in global energy markets to position Abu Dhabi as a world-class research and development hub for new energy technologies.

The drive to diversify the economy dates back many years. The importance of so doing was first spelt out by the late President, H.H. Sheikh Zayed, and it remains a fundamental aspect of the economic planning being undertaken by President H.H. Sheikh Khalifa and by Crown Prince H.H. Sheikh Mohammed.

Over the last couple of years, this process has begun to accelerate, helped, in part, by the fact that high oil prices have generated substantial revenues that can be ploughed into other forms of economic development.

Another development that has made it possible is the fact that, as a result of some thirty five years of education, Abu Dhabi, and the rest of the UAE, now have numerous well-educated citizens who are willing - indeed demanding - to play their part in building a thriving private sector of the economy.

These aspects, together, have made it possible for us to launch some of the new initiatives that we have seen over the last few years. Among these, for example, are the expansion of Abu Dhabi International Airport and the creation of Etihad Airlines, to stimulate a dramatic increase in the number of inbound visitors who will, in turn, provide a boost for the development of our tourist industry. Dozens of new hotels will be built, helping our construction industry, and much else besides. This then links across to our aspiration to ensure that Abu Dhabi will have something special to offer to those visitors, and to residents, like the major new Cultural District being planned for Saadiyat Island. The recently-signed agreements for the establishment here of branches of the Guggenheim Museum and The Louvre are part of that process, and there is more to follow.

We seek, too, to encourage more people to make a long-term commitment to Abu Dhabi and its future, which is why special residential zones have been identified where foreign nationals may purchase properties. If that means, as it will, that more of the money earned here actually stays here, that will provide a further boost to our economy.

Naturally, in this increasingly interdependent world, we recognise that we cannot hope to achieve all of our objectives by ourselves. The growth of Abu Dhabi in the past was possible because of the active involvement of companies, and individuals, from overseas, among whom, of course, many were British. We hope that Britain, and British firms and individuals, will continue to work with us as we pursue our goals.

We believe that the prospects are good - and we particularly welcome the fact that many British companies and institutions have already shown their desire to work with us as we move ahead. BP and Shell, for example, have not only shown their desire to participate in the further development of our oil and gas industry, but, through support for the Masdar Initiative, have also demonstrated their commitment to working with us on some of our newer projects. The expertise from Britain's police is now being put to good use in the re-vamping of our own police force, to provide it with a greater focus on serving the community. Academic bodies like Imperial College, London, and the London School of Economics have formed new partnerships with us that will contribute to the enhancement of our health care services and to education. Sotheby's have struck a deal with the Abu Dhabi Authority for Culture and Heritage that will play a very significant part in our pursuit of our objective to make Abu Dhabi a centre of culture that is of global significance. And, looking again to our heritage, which remains of crucial importance for us, British expertise is playing a major role in our plans for the re-launching of the Qasr Al Hosn (the 'Old Fort') as a centrepiece of the way in which we explain our history, to ourselves and to others.

There is, of course, much more that I could mention - both in terms of the different sectors of our economy and in terms of the many British companies that are now taking part, with such enthusiasm and such expertise, in our process of growth.

As I noted earlier, the relations between Abu Dhabi and Britain are a fundamental part of our history. Now, naturally, those relations are evolving. We in Abu Dhabi offer to the British business community, here and at home, a hand of partnership in the building of our new society. We welcome your presence, and we want you here to share in the benefits of the process of development in which we are now engaged. We believe that there is much, much more that we can do together and we look forward to seeing the results of that partnership in the years ahead. We hope that British companies at home, as well as those already here, will realise the opportunities that exist and will respond to the welcome we now extend.

Mohammed Al Bowardi is the Secretary General of the Abu Dhabi Executive Council