By Claire Ferris-Lay
Mansouri says banks have taken steps to shield themselves from European debt woes
The UAE economy will likely see growth of between 3 to 3.5 percent this year, the Gulf state’s economic minister said on Monday, adding that he hoped growth would exceed expectations.
“According to the data, oil prices, trade and industry figures…there will be a positive economic growth for this year. My expectation is that the growth will be more than 3 to 3.5 percent this year,” said Sultan bin Saeed Al Mansouri.
Regional stock markets declined further on Sunday amid fears Europe won’t resolve its debt crisis, threatening global growth. Abu Dhabi Securities Exchange General Index was down 0.2 percent while Dubai Financial Market General Index fell 0.07.
Brent crude futures fell more than $2 to $101.81.
Asian markets tumbled on Sunday, the first day of trading since US Treasury Secretary Timothy Geithner warned that a failure to combat the Greek-led turmoil threatened “cascading default, bank runs and catastrophic risk.”
UK Chancellor of the Exchequer on Friday said that European banks had six weeks to resolve the banking crisis or risk a second recession. Speaking on the sidelines International Monetary Fund meeting George Osborne said “time was running out” for European leaders.
“There is now quite a clear deadline set which is the Cannes summit in six weeks time. The euro zone has six weeks to resolve this political crisis,” he told reporters.
The UAE economy is well prepared to deal with the fall out in Europe, said Al Mansouri.
“I believe the UAE banks have taken all the necessary precautions to address these kinds of issues,” he said. “We look at the issues and the problems that have been going on for the past few years globally…we have the tools and everything to resolve them so [the UAE economy] is not going to be as affected as other countries.”
"The UAE economy is not going to be affected as other countries" - how and why? Can see history repeating itself like 2008 when powers that be said the UAE wouldn't be affected and look what happened..this financial crisis will affect every country on earth and it will be worse than 2008.
Where is optimistic Omar? Missing his comments. I'm sure he will have more statistics to show why "the UAE economy is not going to be as affected as other countries."