The UAE has a vital role to play in blocking the flow of funding to terrorist organisations, according to Britain’s Security Minister, Admiral Lord West. As a key regional financial centre, the country is in a unique position to help “exorcise the cancer of violent extremist terrorism”, he was quoted by The National as saying.

He was speaking at the beginning of a two-day visit to the Emirates in June, during which he met H.H. Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, Lt.-General H.H. Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Interior, and a number of other senior officials.

“It is in the interests of all countries in the world to exorcise the cancer of violent extremist terrorism,” he said. “This is a focal point of travel in the region. A lot of people come through this region. It is a finance centre; a financial hub. Everyone needs money, even terrorists. So if you can cut off the lucre to the extremists and terrorists that’s going to get them where it hurts.”

In an interview, the British Minister outlined the British government’s anti-terrorism strategy, known as Contest 2. It covers four main areas: pursuing suspects, protecting citizens, preparing emergency response and preventing radicalisation of extremists.

“You cannot simply arrest and prosecute your way out of this situation; it requires a more comprehensive approach in which you counter the radicalisation of people,” West was quoted as saying.

In May this year, the UK Border Agency ran training courses for Abu Dhabi Customs officers on combating money laundering and gathering intelligence and Lord West noted: “Clearly we have an interest in the stability of the region… The UAE is one of our closest and oldest friends in the region. I don’t think we have anyone in the Gulf who is a closer friend.”

During his visit, Lord West also visited the headquarters of Dubai Customs, to discuss ways of improving the exchange of intelligence between British and Emirati law enforcement agencies. The Emirates News Agency, WAM, said that talks had focussed on ways “to build bridges between both sides in various fields and to strengthen their mutual relationship in order to serve shared interests.”

“The two sides also discussed bilateral co-operation for combating illegal trade through the use of the latest technologies; expertise exchange between the two countries; mutual capacity building initiatives and the enforcement of restrictions and prohibitions through ‘Risk Based’ Port Controls,” it said.

The expanding links between Abu Dhabi and Britain took a dramatic step forward in July with the announcement that Abu Dhabi’s Aabar Investments had agreed with UK-based Virgin Group to enter a strategic partnership, which will see Aabar take an equity stake in the world’s first commercial spaceline - Virgin Galactic. Until now, Virgin Galactic has been wholly-owned by the Virgin Group, controlled by British entrepreneur Sir Richard Branson.

The deal was signed at the EAA AirVenture air show in Oshkosh, Wisconsin by Branson and Mohamed Badawy Al-Husseiny, CEO of Aabar. Virgin Galactic’s new carrier space launch vehicle, WhiteKnightTwo (VMS Eve) also made its public demonstration flying debut at Oshkosh.

Under the deal, Aabar will invest approximately $280m and take around a 32% stake in Virgin Galactic’s holding company, valuing the business at about $900m. Aabar, a subsidiary of the International Petroleum Investment Company, IPIC, chaired by Minister of Presidential Affairs H.H. Sheikh Mansour bin Zayed Al Nahyan, has also committed $100m to fund a small satellite launch capability, subject to the development of a full business plan. It will also gain exclusive regional rights, subject to regulatory clearances, to host Virgin Galactic tourism and scientific research space flights. Aabar is also planning to build spaceport facilities in Abu Dhabi.

Commenting on the acquisition, Khadem Al Qubaisi, Chairman of Aabar, said, “I am pleased to announce this partnership. Virgin Galactic is the leader in the realm of space tourism, having successfully established a potential global market for its offering in a very short span of time. Aabar’s stake in Virgin Galactic will open a new avenue of opportunity for Abu Dhabi in this unique and dynamic business. The significant partnership not only falls in line with Abu Dhabi’s larger plans to inculcate technology research and science at a grassroots level but also complements its aim to be the international tourism capital of the region.”

Sir Richard Branson added: “We are delighted to partner with Aabar in a strategic deal that is a first for Virgin Galactic. The initiative will leverage the solid financial backing of Aabar and the pioneering technology and strong global relationships of Virgin Galactic. This exciting deal is indicative of the interesting and high value investments that mark the UAE’s commercial portfolio.’

Virgin Galactic is in the final stages of developing and testing commercial sub-orbital space vehicles based on the prototype SpaceShipOne, that flew successfully to space and back three times in 2004. The system uses a carrier aircraft for launch of the spaceship at high altitude, a controllable and benign hybrid rocket motor and a unique wing feathering design for a failsafe re-entry. The spaceship makes a runway landing rendering it almost entirely reusable. The new spacecraft, SpaceShipTwo will commence its own test flight programme before the end of 2009.