UAE's finance chief upbeat about growth

The UAE's minister of state for finance said on Tuesday he remained positive about the prospects for economic growth in the Gulf Arab state in 2009.

"We remain positive for 2009 economic growth," Ubaid Hamid al-Tayer told reporters in Abu Dhabi, when asked if the UAE would post economic growth next year.

He also reaffirmed a government promise to guarantee deposits in the UAE and said the finance ministry's 70 billion dirham ($19.06 billion) funding facility was "enough" to meet the liquidity needs of banks.

"The right legislation will be imposed soon," Tayer said of the deposit guarantee first announced in October.

"We have taken all the right steps so far to reflect the liquidity in the market," he added.

"The ministerial committee has met 15 times so far and we will take more measures that need to be taken. There is a commitment to put more money if needed," he said, adding that the money pumped into the banking sector was sufficient.

"It is enough, it represent 14 percent of the UAE GDP."

The committee comprises representatives from the ministry of finance, the ministry of economy and the UAE Central Bank.

His comments followed those of Dubai ruler and UAE prime minister Sheikh Mohammed bin Rashid Al Maktoum who earlier said the local economy has been and is still sound and that government was handling the fall out of the global financial crisis with patience and wisdom.

MORE FROM ARABIANBUSINESS.COM