UAE to rebound with 'greater confidence' - Prime Minister

DUBAI LEADER: Sheikh Mohammed bin Rashid al-Maktoum. (Getty Images)

The UAE said on Wednesday its economy would rebound with "greater confidence" thanks to measures taken to reverse the impact of the global financial crisis on the second largest Arab economy.

"Despite all the negative effects of the crisis, they have proven that our economy is solid and capable of absorbing its various ramifications," the oil exporter's Prime Minister Sheikh Mohammed bin Rashid al-Maktoum said.

"We are confident that the steps and measures that we have taken so far would contribute to the return of initiative to our economy ... and continue the march of growth and construction with greater confidence and zeal," he added in a speech to the Federal National Council, a body that acts like a proxy parliament in the Gulf Arab union of seven emirates.

The federation includes key oil exporter Abu Dhabi and trade and tourism hub Dubai, ruled by Sheikh Mohammed.

Amid doubts that Dubai might default on debt mainly owed by state-linked entities amounting to around $70bn, Sheikh Mohammed said the federation's economy cannot be looked at in fragments.

"Our national economy is coherent that upholds the federation as a final choice that regulates all the aspects of our life and in facing all the challenges we face."

Dubai is expected to launch the second trance of a $20bn bond programme this quarter. The UAE central bank bought the first portion of the bond worth $10bn.

Separately on Wednesday, the UAE's economy minister said the economy was set to grow 1.3 percent in 2009.

"This would be a good figure," Sultan bin Saeed al-Mansouri told Al Arabiya television.

In September, the central bank governor said that the economy could contract or register a low growth rate. (Reuters)

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READERS' COMMENTS

Dubai Warming up in winter
Posted by Asif, Sharjah, UAE on Monday 26 October 2009 at 13:46 UAE time


Good to hear such words from the officials, reassuring and encouraging to all. Place like Dubai and UAE in general cannot stay down for long time, I am glad people are regaining confidence, however few things yet to be resolved like visa for investors, setting up costs, rents and other charges. If made available and reasonable the pace of recovery will accelerate and recession will be a thing of past. want to see Dubai and UAE among the top places in the world.

Another dream
Posted by Pradeep Naik, Dubai, UAE on Monday 26 October 2009 at 07:47 UAE time

New bonds & new borrowings will not make these empty buildings filled overnight.
I feel they (......) must give visas, license, medical etc.. at backdated, I mean 1988-90, cost, reduce the rents & offer some kind of attractive schemes for other countries to invest here.
This country need new blood & new ideas.

Thinking Positive
Posted by A M Rawof, Dubai on Thursday 22 October 2009 at 18:41 UAE time


Considering location of Dubai as central hub for business, UAE never be on recession, but on temporary downturn, due to recession on other countries. UAE will not breathe the recession, due to least social assistance requirement. i.e. considering UAE Population census, maximum 20% of native Emiratis are eligible for social assistance (if required), remaining 80% of expatriates will pay to boost the economy. Of course, most expatriates are effectively with reasonable living atmosphere, Security and income, and most cases better than their native. Panics created by speculators are fading away, and again speculators are responsible for both skyrocketing increase of real estate business and subsequent slump

things are better
Posted by Az, Dubai, UAE on Wednesday 21 October 2009 at 19:01 UAE time


Well I cannot say if things are back to normal. But I am sure that the worst is over. The tallest tower in the world will be enough to boost the confidence of the UAE. The only thing I really hope is that the rentals be realistic in Dubai and Abu dhabi so people continue to come it. The Dubai stock market is one of the best investments now, and when Abu Dhabi is backing up Dubai, there is a good feeling.

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