Mideast set for stronger growth in 2010 - UAE

Economic growth in the Middle East in 2010 will be stronger than this year as the region begins to recover from the impact of the global crisis, a senior UAE financial figure has said.

Speaking at the annual meetings of the International Monetary Fund and World Bank in Istanbul, Obaid Humaid Al Tayer, UAE’s Minister of State for Financial Affairs, admitted that the region had been hit in 2009 but was confident that growth would return next year.

He confirmed that a large number of countries in the region were suffering a deflation in remittances and tourism and a decline in the volume of foreign direct investments.

He added that the region had experienced a decline in growth due to lower world oil prices and low volume production. Growth rate in the region was forecast to reach 2.25 percent in 2009, he said.

But the Minister remained upbeat on the prospects for 2010 and said there were "strong expectations that this percentage will increase in 2010".

In a statement, Al Tayer referred to the world economic outlook, developments in global financial markets, policies that have been taken by IMF members and its effects on restoring economic stability and confidence to global markets.

He said there are encouraging signs indicating that global markets are emerging from the worst financial and economic crisis in the post second world war period.

The Minister commended the importance of the IMF’s role in containing the crises and lauded its ability to develop appropriate mechanisms to restore confidence in the global economy.

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