UAE can ward off global crisis with ‘solid’ economy

The global financial crisis ended the oil and real estate fuelled boom in the world’s biggest oil producing region, sending its top economies — Saudi Arabia and the UAE — into a downturn this year.

Dubai’s debt crisis has further dented expectations that the UAE could return to solid growth next year.

“Regarding the global financial crisis, we — praise God — with the solid foundations of our economy … have been able to contain the negative impact of the (global) crisis and overcome many of its ramifications, UAE President Sheikh Khalifa bin Zayed al-Nahayan told the official Kuwait news agency, KUNA.

“We have the capability and determination to continue working in this direction to complete the steps we have taken in this regards to arrive at removing all the obstacles that prevent the continuation of the momentum and thrust of the development process,” he said in an interview.

The UAE economy was expected to expand by 2.9 percent next year after shrinking by 1.1 percent in 2009, a Reuters poll showed last month.

But Dubai’s shock announcement that it would ask creditors of its flagship firms for a standstill on billions of dollars of debt made some economists expect a more modest UAE recovery.

Sheikh Khalifa said the UAE and fellow members in the Gulf Cooperation Council — a six-member loose economic bloc — would look into further moves to immune their economies against the global financial crisis and “any possible ramifications”.

“It is only normal that the Kuwait summit would review the steps taken by the Council countries in this regard and to study any completing steps to fortify the economies of the Council countries and avoid any possible ramifications,” he said.

Sheikh Khalifa did not elaborate on the envisaged steps in an interview with KUNA ahead of the December 14-16 Gulf Arab summit, where he is going to meet the fellow rulers from Saudi Arabia, Kuwait, Qatar, Oman and Bahrain. (Reuters)