The UAE is expected to recover from the global financial distress faster than other economies given its enormous wealth and experience in crisis management, according to a senior Arab banker.
Fouad Shaker, Secretary General of the Union of Arab Banks (UAB), said the UAE economy is projected to grow by three to five per cent this year while many other economies in the region and the world could suffer from contraction.
Writing in the monthly magazine of the Beirut-based UAB, which groups nearly 470 Arab banks, Shaker said sound fiscal and economic policies have allied with massive petrodollars income to allow the UAE to become one of the best investment destinations and most liberal economies.
He cited international reports which ranked the country 24th in terms of foreign direct investment and 15th in terms of economic freedom. In the Arab world, the UAE has topped the list in terms of economic freedom.
“Given these great accomplishments, which are unprecedented in the Arab region, it has become quite clear that the strength and flexibility of the UAE’s economy will enable it to stand firmly and powerfully in the face of the financial storm which is sweeping the entire world,” Emirates Business 24/7, quoted Shaker as having said.
“Considering such capabilities, we believe that the UAE has the potential to recover and overcome this crisis faster than the others. What supports our belief is that the UAE possesses immense financial and economic resources and a long experience in managing crises.” Shaker said the UAE economy, which recorded real growth of between five and seven per cent over the past two years, is projected to grow by three to five per cent in 2009 despite the global credit crunch and the sharp decline in oil output and prices.
He expected the country’s economy, the second largest in the Arab world, to pick up in the second half of this year despite an expected plunge of nearly 50 per cent in the UAE’s crude export earnings compared with 2008.
“The UAE economy is expected to recover and gain momentum in the second half of this year as the country possesses enough resources to overcome the economic slowdown through which the world is going,” he said.
“Such resources have been made possible not only through its massive oil wealth but its ambitious strategies, sound policies, a strong will for development and change, a bold initiative, and above all, self-confidence….with such characteristics, the UAE has become a strong economic and investment oasis… therefore, it is normal that the UAE will be able to fully recover and overcome the current crisis faster than other economies.” According to Shaker, the UAE would continue to make achievements on the Arab and international levels given the following factors: – It possesses massive resources and strong experience in risk and crisis management.
– It has a strong economy based on sound planning policies and investment of a large portion of the oil wealth internally.
– It has pumped huge funds into infrastructure projects and economic diversification programmes.
– Its economic and financial prospects are very promising.
– Dubai has largely contributed to growth in the UAE over the past years.
