By Gavin Davids
Cenbank governor also expects lower economic growth and inflation rates in 2010.
Banks in the UAE enjoy high liquidity and are not in any need of additional support, said the Governor of the UAE Central Bank today. Infact, they do not face any liquidity problems at all, he added.
Speaking at the sidelines of the opening of the new headquarters of the Sharjah Islamic Bank (SIB), Sultan bin Nasser al Suwaidi said that the stabilisation of the global economic and financial crisis reflected positively on the UAE.
He added that he felt that the economic growth in the UAE would not be enormous in the coming period and that inflation rates would be very low.
Al Suwaidi also said that he thought that property prices have declined to a point where they have started to become attractive to investors.
He reiterated that the UAE would continue to be pegged to the US dollar, and would not be participating in any attempts to develop a unified Gulf currency.
He said: “We are pegged to the dollar, so we will be pegged to the interest rate too.”
The UAE had pulled out of the project to develop a single Gulf currency in May after its request to be the host of the common central bank was rejected by the other member states in favour of the Saudi Arabian capital, Riyadh.
The new headquarters of the Sharjah Islamic Bank is an effort to make the bank more integrated and to develop its services to its customers.
Mohammed Abdullah, CEO of Sharjah Islamic Bank, said that the financial solvency of the bank equals 27 percent of its capital.
He asserted that the liquidity and safety of the banks portfolio are sound and that profits for 2009 are good.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Not more than a month or two ago at a UAE banking conference, which was covered/highlighted here on AB, it was publicly disclosed by the banks that they had a LIQUIDITY problem/issues in excess of $11bln (AED40bln). On the one hand officials claim there are NO liquidity issues and then on the other...the entities that actually live the banking system day to day, the banks themselves, they claim they DO have liquidity issues. Officials tend to tread an 'official' line sometimes blindly but they really should be observers of what their own 'industry' are saying and fully understand what is being said publicly by the people on the ground. It surprises me less day by day that people are starting to question the official 'version' not just here, but globally. This is unrelated to Dubai but is a clear example...Look at what happened on the supposed bomb threat in the USA on the airoplane on route to Detroit. The FBI put out an official 'version' which was immediately rebutted by actual eye witnesses! The version the FBI want people to hear is 'their' version and not the real version of the events as events unfolded. If it were not for the passengers remaining addament that their version is correct the world would believe the FBI. Even Obama is questioning what happened as it seems even he is not 100% behind his own FBI agency. The USA bomb thing has nothing to do with us here in Dubai but it shows that worldwide people are starting to question. No longer do we accept what we are being told, we are starting to question it where questions are warranted. Dubai has come on leaps and bounds in terms of opening up govt and trying to report facts better but this banking article still shows the flaws that are yet to be addressed. The flaw in the article is nothing more than the official not being well informed. His advisers should be more aware of the reality and what is already in the public domain.