Dubai: With the increased economic sanctions on Iran, Dubai Police Chief Lieutenant General Dahi Khalfan Tamim says he is expecting an influx of Iranian investors into the UAE, from which the country should benefit.
He called on the economic development authority in the emirate to facilitate the establishment of Iranian businesses. He said Dubai is the right platform for Iranian investors to stay connected with the rest of the world while growing with the re-export sector in the UAE.
He ruled out fears that investments might be used as front by the Iranian government to bypass sanctions. He said Dubai has the means to make sure that Iranian investors operate within the parameters set by the United Nations Security Council.
Neighbouring nation
He said the UAE and Dubai in particular would strictly enforce sanctions imposed by the UN, but would not respect any kind of unilateral sanctions against the neighbouring nation.
"We consider bilateral sanctions as illegal. Our stand is clear and thus Dubai will not enforce any kind of bilateral sanctions under any circumstance," he stressed.
He said Iranian investments in Dubai were not a new phenomenon.
"Iranian businessmen have been investing in Dubai for ages. This time the need is there to expand the existing business channels between Dubai and Iran to meet the increase in demand," Dahi added.
Shaikh Khalid Bin Zayed, Chairman of Bin Zayed Group, said:
"What [the UAE] is really looking for to help the market rebound are long-term investors".
Encouraging investors
"Also, government should take the development of legislation seriously, in addition to the need to launch several initiatives to encourage investors and bring new strength to the market."
He said that legislation had been revised to cope with the economic crisis.
"We acknowledge that we don't have well-defined legislation for matters such as bankruptcy, but a lot of work is taking place to improve our legal infrastructure."
According to Dr Mohammad Al Asoomi, a leading UAE economic expert, bringing back confidence, professionalism and planning are the keys to regaining market strength.
Dahi said he had evidence that certain local banks had sufficient liquidity and had made greater profits during the crisis than they had made public.
He said these banks were controlled by "sharks" who exploit everything to their benefit.
While they refuse to finance a project that is 70 per cent complete, they lend money to new companies that have nothing to show, he said.
New opportunities
Shaikh Khalid Bin Zayed Al Nahyan, Chairman of Bin Zayed Group, has issued a call for new opportunities for investors in the UAE.
"The UAE is a saturated market in terms of retail, tourism, hospitality and other services.
"To regain balance in the market and avoid lapses we have to launch different investment opportunities in the country," he said.
"We should find investments that return good revenues to encourage investors and since we have the raw materials and can be a good competitor, we have to turn our attention to the petrochemical industries," he added.
He added that the petrochemical sector is dominated by the government and should be opened up to private-sector investors.
Dr Mohammad Al Asoomi, a leading UAE economic expert, stressed that there should be a transformational change in development plans and the government should allow the private sector to invest in the petrochemical industry.
In his comments, Shaikh Al Qasimi remarked that if the petrochemical industry was not supported by the government, it would be tough for investors to develop such projects.
"The petrochemical sector is 75 per cent controlled by the government and 25 per cent by sharholders. It would be very challenging to invest in projects when you don't have enough capital, have to import the labour force and are investing in a consumable market," Al Qasimi said.
Lieutenant General Dahi Khalfan Tamim, Dubai Police Chief and Head of the Government's Budget Committee, said: "Above all, we should regain investors' confidence in the market and allow them to pursue their projects.
"Psychological security for investors in the UAE market is missing. The bad image of some of the companies' management and their fragility, which has been shown up during the crisis, means a revamp is required."
Mohammad Al Tuwaijri, HSBC's Head of Global Banking and Markets, Middle East and North Africa, said that the Gulf markets and economies were the focus of the world. With its oil reserves and sovereign funds the Gulf will remain the best destination for investors, he said.
"There is no alternative," he concluded.
