UAE now on recovery path - Dubai business chief

There are clear economic indicators showing that the UAE is in recovery mode from the global downturn, Hamad Buamim, director general, Dubai Chamber of Commerce & Industry said on Wednesday.

He said the rebound in export trends for Dubai - which dropped drastically in November 2008 and continued to decline to May - was a sign that the UAE economy was looking up.

Monthly exports of Dubai Chamber members grew to a peak of almost AED25 billion in October 2008 but slumped in the following seven months, he told the third Economic Seminar.

But the monthly exports have move back over the AED15 billion mark from June to August, he added.

He accredited the turnaround in the economic situation to the government’s fiscal policies.

He said a survey charting the outlook of Chamber members over the next three months had "shown considerable improvement in the areas of total receipts by companies, total employment and access to financing".

The survey also indicated that issues such as keen price competition, payment default by debtors and low global demand were becoming less of a worry for members, compared to a survey taken in February to April.

Buamim added: "The critical factor which will drive output towards the end of this year and throughout 2010 is likely to be the government’s fiscal policies of stimulating the economy. That is namely to predominantly increase public expenditure in the construction, transport and the utilities sector in order to increase aggregate demand, employment and hence economic growth."

He said that clearer legislation would be one way to improve the UAE's investment climate while he also supported moves to promote the participation of the private sector in the country.

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