UAE economy is able to overcome the crisis

Analysts and officials said the United Arab Emirates UAE is able to withstand the global financial crisis thanks to the intervention of the authorities and the strengthening of public expenditure, stressing that the economy will recover faster than many other countries.He reminded them that the high-spending by the government means that the economy of the seven emirates that constitute United Arab Emirates would avoid the worst consequences of global financial crisis, even if that government intervention has been slow somewhat in the Central Bank was forced to support the Dubai liquidity.The Minister of Education and Higher Education Sheikh Nahyan Bin Mubarak Al Nahyan, "Believe me, that (the recovery of the economy) will be closer than many think."Sheikh Nahyan said in front of the participants in the economic forum in Dubai this week, "We are lucky because our government has taken several steps to address the problem of" economic slowdown.Like the rest of the GCC oil-rich, by the proceeds of crude oil in the UAE with a large fall in prices following the record high reached last July when more than $ 147 a barrel.However, the UAE, particularly Abu Dhabi, which owns across the vast majority of the UAE oil, collected over the past years a huge financial surpluses from oil revenues.Emirate of Abu Dhabi has one of the largest sovereign fund in the world.For his part, said the chief executive of Deutsche Bank in the Middle East and North Africa, Henry Azzam, "The Gulf Cooperation Council Alkhalii in a better position than many other countries," lack of oil resources.Azzam said in an interview with reporters on the sidelines of the forum, said the Gulf states "they have huge reserves abroad when the crisis began."He said Gulf governments have been intrusive, especially through "Anfakip fiscal policies, and policies relating to money and deposits" in banks.The Government has moved in the UAE in October to support the bank and placed at the disposal of 32,6 billion dollars to boost liquidity and to ensure their deposits in banks operating in the country. Was also a lower interest rate.The Government of the Emirate of Abu Dhabi last January to pump 16 billion dirhams (4.36 billion dollars) in five local banks to strengthen confidence in the financial sector.Azzam criticized the slow pace of Gulf governments to act to reassure the markets and what it has done in the field range of the reaction and not pre-empt things.The emirate of Dubai, which do not have the surpluses of oil revenues, was the most open to world markets, and thus the most affected region of the repercussions of the global financial crisis.The real estate sector slowed down significantly in the emirate after the staggering pace of growth during the past few years, particularly since the opening of the sector to foreign Almtstmaren in 2002.Dubai has issued the bonds last month, the value of 20 billion dollars in order to be able to meet financial obligations as it has strongly borrowing over the past years.Dubai's debt with the exception of the debt of banks, 74 billion dollars.Azzam said, adding he did not procure the refinancing of Dubai is estimated at between 15 and 16 billion dollars this year, said the problem at the level of Dubai's debt will affect the risk assessment for the whole UAE.For his part, the Director-General of the Chamber of Commerce and Industry, Hamad Buamim, Dubai, expressed his confidence that the economy of the emirate of Dubai will recover soon. He told reporters that "Dubai is the gateway to this part of the world in which economic power is the key Saudi Arabia," alluding to the role played by the emirate's regional hub for trade and services."I am optimistic that the year 2009 will be the stability of the year and the year 2010 will be a growth year, but not growing like we have seen in the past," referring to the rapid growth of the emirate over the past years.And the International Monetary Fund forecast that the growing economies of the Gulf Cooperation Council by 3,5% in 2009 compared with the estimates point to 6,8% growth recorded in 2008.