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Former DIFC chief says Dubai needs more support
The former CEO of Dubai International Finance Centre (DIFC) Authority has said he believes more state intervention is required to ensure Dubai’s recovery from the global financial crisis.
Nasser Alshaali, now CEO of UAE-based boat and yacht maker Gulf Craft, said the fallout from the downturn caught Dubai by surprise and that further policy changes were needed to bolster the emirate’s path out of the crisis.
“Dubai was definitely hit very, very badly. You talk to the businessmen and they’re all shocked. In the fall of 2008 and the spring of 2009, there was an air of desperation. We thought we were immune,” he told Arabian Business in an interview.
“Then it was the hope we could survive. But it will take, and it will continue to take, more policy changes with respect to the government; regulatory as well as fiscal policy and stimulation.”
To date, half of a $20bn sovereign bond programme, a shot in the arm for ailing state-backed companies, has been launched. The second tranche of $10bn is expected shortly.
Dubai has been the subject of a feeding frenzy by the Western press in recent months, which has questioned the emirate’s ability to support its estimated $80bn debt, and highlighted the reported $300bn worth of projects on hold.
The negative coverage was to be expected, Alshaali said, and would benefit Dubai in the longer-term.
“There’s not much I can say about this. It’s easiest to shoot down the person flying highest,” he said. “You can’t have that much attention drawn to yourself in a positive light, and then not expect it to turn negative when things turn negative.
“As long as Dubai survives this, it will be better off. Even with the negative press. And chances are it will.”
More broadly, he added that he had “no worries” over the Gulf region’s ability to rebound.
“Regionally, the good news for us is the same good news we had in boom times; the fundamentals are very strong. Liquidity is very strong. The demographic situation is still what it was, and that is cause for optimism.
"And the commodities story is still very strong - not just oil, but aluminum, copper, gold – it is one of the huge untapped opportunities here, and some of the world’s largest deposits are in Saudi Arabia, basically untouched.
“There’s no worry from my perspective over the health of the region.”
Read the full interview in Sunday's edition of Arabian Business magazine.
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Comments 1-10 of 10
Posted by CT on 1 November 2009 at 12:41 UAE time
My dear Salwa who built this city and the rest of the UAE for you. Certainly not you nor 90% of emiraties. Other countries build themselves up (the citizen belonging to that country) but here you have asked the rest of the world to build it for you. So don't you get up on your high and mighty pedestal and think the world owes you because it doesn't owe you anything. People like you who make comments like you have just done, lack RESPECT for others. It's the one who builds that becomes part of that building. In this case it's all the people that built the UAE that are part of the UAE whether you like it or not.
Posted by Ishaq, Dubai, UAE on 31 October 2009 at 17:52 UAE time
Our wise leadership and all of us welcome expats who are our dear guests but also you shouldnt demand the impossible. We have to be realistic and no offense to anybody ok.
Posted by Dan, Stockholm, Sweden on 31 October 2009 at 17:21 UAE time
Guests are people who come to your house and whom you take care of for a few days. A guest in your house doesn’t have to work or pay and I know for a fact that most Arabs in general and Emiratis especially are very hospitable people.
People who come to UAE work and pay for everything. They are NOT guests. Your leaders wanted people to come to UAE to invest and work. I understand some of Emiratis don’t like the demographic situation as you feel you are being overwhelmed by foreigners.
Again, if you don’t want them, no problem, say so and start sending them back. It is your country. But if you let them stay year after year, they will demand changes. It is normal and happens in every country.
You should know that people with a different opinion then yours are NOT enemies of UAE. I visit Dubai 3 times a year as a tourist and love the city and admire its progress.
Posted by Zaka Ullah Khan, Faisalabad, Pakistan on 31 October 2009 at 13:29 UAE time
You just said it, kindly note that for most of the people a guest is a burden maximum on his / her third day. You spend five years in any European country (without a criminal record) and you get recognized as a worthy person to become a citizen of that country. In return you find a person who is willing to give his life for that adopted country and his next generation is more loyal. This is the reality and you should reconsider your opinion because opinion could be wrong but not the truth.
Posted by shuks, Dubai, UAE on 31 October 2009 at 12:03 UAE time
Brother your remarks are at variance with the actions of your leaders. Expats are here only because they are allowed to do so. This is clearly the way to progress which has benefited both the country and expats. In the long run if the size and benefits of this economy has to be enjoyed by all then ways need to be found to incentivise expats to invest. The wise leaders have done precisely this and your comments are against it.
Posted by Salwa Khalfan, Al Ain, UAE on 30 October 2009 at 23:08 UAE time
Dan you better stick to Stockholm because you and your ilk must have realised by now that this great place will never open its arms to you. You can seek a sense of belonging in your own country that may have disowned you or elsewhere but definitely not in this part of the world. It would be so futile to think otherwise. With superficial love Salwa Khalfan
Posted by Dan, Stockholm, Sweden on 30 October 2009 at 18:55 UAE time
Sorry to say but this “you are here as guests” stuff doesn’t work in the long run. It works when people stay for short periods but when you bring your family and your kids go in school and people stay for years then they start to demand changes and so rightly. Especially in UAE case when the expats are in an overwhelming majority.
You don’t want this scenario, fine start sending the expats back. Do it now before it’s too late. You should know that the problem the Middle Easterners in Europe complain about is NOT BELONGING and not being able to be a part of the society, even if they have citizenship and all the right as the others in the country.
Make up your mind. You can not eat the date and still have it.
Posted by Salwa Khalfan, Al Ain, UAE on 30 October 2009 at 17:42 UAE time
Zaka Khan must remember that our beloved guests in the UAE are not REFUGEES, they have their own countries to return to even after spending decades in the Gulf. I am sure you also have your country where you will always feel that sense of belonging you SO yearn for. The Gulf is for Gulfers not a haven for immigration. Because of dictating their never ending nonsensical demands and their hostile and arrogant attitudes towards their hosts, many guests have shown and proved that they are not worthy of being citizens of this country. At best our relationship with our guests will remain a symbiotic one. The UAE was is and will never be for sale. We belong here and you belong there. With superficial love Salwa Khalfan.
Posted by zaka Ullah Khan, Faisalabad, Pakistan on 30 October 2009 at 11:27 UAE time
Very simple: Give all the people who are in UAE or GCC a sense of BELONGING to the palce. The rest will follow.......
Posted by ahmed on 29 October 2009 at 18:12 UAE time
At last...a truly realistic opinoin.