Sunday, January 2 2005 15:05 Hrs (IST) - World Time -

Dubai: The death of two colossuses, UAE President Sheikh Zayed and Palestinian leader Yasser Arafat, both of whom dominated political life of the region for more than quarter of a century and the continuing conflict in Iraq, which goes to polls early next year, marked 2004 in the Middle East.

UAE's President Sheikh Zayed bin Sultan al Nahyan, a moderate voice in the Arab world, died after a long illness in Abu Dhabi in November.

In a smooth transition of power, Sheikh Khalifa, the eldest son of the late President, took over the reins of UAE. He was the crown prince of Abu Dhabi emirate and deputy supreme commander of the Armed forces.

Arafat, the man who put the quest for a Palestinian homeland on the world agenda, died in Paris in November due to a "mysterious" illness, leaving the leadership question open and the Middle East issue still unresolved.

Arafat's death and the likely election of former Palestinian Prime Minister Mahmoud Abbas as his successor in elections on January 9 are regarded as marking a unique opportunity to give a fresh impetus to the peace process.

Abbas became chief of the Palestine Liberation Organisation following an anonymous vote by its executive committee after Arafat's death.

On the economic front, India had a good year in trade as it overtook China as UAE's trade partner with exports growing by a whopping 47 per cent.

Meanwhile, Iraq continued to be the flashpoint as the embattled nation limped towards the January 30 polls to elect a 275 member transitional national assembly.