Business | Economy
Abu Dhabi economy will be partly affected by global financial crisis
The impact of the economic slowdown in the US and Europe on Abu Dhabi will be minor, according to Mohammad Omar Abdullah, undersecretary for Abu Dhabi's Department of Planning and Economy (DPE).
- By Himendra Mohan Kumar, Staff Reporter
- Published: 00:27 October 10, 2008
Abu Dhabi: The impact of the economic slowdown in the US and Europe on Abu Dhabi will be minor, according to Mohammad Omar Abdullah, undersecretary for Abu Dhabi's Department of Planning and Economy (DPE).
"The impact of what's happening now in the US and Europe is being seen in all parts of the world. There will be an impact on Abu Dhabi's economy as well, but it will be minor," Abdullah told reporters yesterday. "We are now analysing and responding to the whole situation. This includes the Central Bank and banks operating within the UAE."
Abdullah said Cityscape Dubai will give an indication of the possible impact the global financial crisis is having on the UAE's real estate sector.
According to the Middle East Economic Digest (MEED), Abu Dhabi has seen its gross domestic product (GDP) soar to $108.9 billion in 2007 from $40.6 billion in 2002.
Separately, Abdullah said inflation in the country is determined by internal as well as external factors. External factors include oil prices and the exchange rate of the US dollar to which the UAE dirham is pegged, he said.
Steps
Internally, Abdullah said measures have been taken by the Abu Dhabi government to contain inflation in key areas such as consumer goods and rents.
"It's a long-term exercise. I hope this will have an impact on the level of inflation," said Abdullah.
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