Font Size

- Aa +

Mon 23 May 2011 01:14 PM

Font Size

- Aa +

Bank lending to fuel UAE economic growth: Al Mansoori

UAE Minister of Economy says Gulf state will see up to 3.5% growth in 2011

Bank lending to fuel UAE economic growth: Al Mansoori
The UAE’s Minster of Economy has called for the country’s banks to start lending again in a bid to boost economic growth in the Gulf state

The UAE’s
Minster of Economy
has called for the country’s banks to start lending again in
a bid to boost economic growth in the Gulf state.

The economy
of OPEC-member UAE is expected to grow by 3-3.5 percent in 2011 but is
dependent on increased liquidity in the banking system, said HE Sultan Al
Mansoori
.

“They
[banks] need to do something about these deposits which means we need to
reignite the economy of the country by pushing more of the liquidity into the
system,” he said on the sidelines of the 4th Arabian Business Forum
in Dubai
.

Lenders in
the UAE, which has been hit hard by the global economic downturn, saw minimal
growth in 2010 as lending tightened and funding costs increased.

“Without
the banking sector [and] without providing for the liquidity, we will not be
able to move on with this economy to the speed that we would like it to be,”
said Mansoori.

“We should
not lose the opportunities of the potential of the new sectors that are now
calling for the support from the financial system, from the governments, from
the infrastructure of what we have here in the UAE.”

Click here to read our LIVE blog from the 4th Arabian Business Forum