Business | Economy
Impact of global crisis on UAE economy 'limited'
Local companies' outstanding performances alongside the country's diversified sources of income are mitigating the effect of the global financial crisis on the national economy, Abdullah Al Turaifi, chief executive officer of the UAE Securities and Commodities Authority (SCA) said here yesterday during a conference.
- By Himendra Mohan Kumar, Staff Reporter
- Published: 23:25 January 25, 2009
Abu Dhabi: Local companies' outstanding performances alongside the country's diversified sources of income are mitigating the effect of the global financial crisis on the national economy, Abdullah Al Turaifi, chief executive officer of the UAE Securities and Commodities Authority (SCA) said here yesterday during a conference.
Al Turaifi added: "SCA is working hard to both cope with effects of the financial crisis and to develop a robust financial services industry that can cope with crises as they happen."
The impact of the global financial crisis in the Gulf Cooperation Council (GCC) is "more subdued" than other parts of the world, but falling prices of oil - which is a major source of revenue for GCC economies - are a cause of concern, a senior official of the International Monetary Fund (IMF) said.
Axel Bertuch-Samuels, Deputy Director in IMF's Monetary and Capital Markets Department, said: "The financial contagion may have a moderate economic impact on the region, if the oil prices decline further."
Oil prices have plunged to sub-$50 (Dh183.5) per barrel levels from the peak of $147.27 a barrel on July 11 last year, triggered by the global financial crisis. The crisis has brought recessionary pressures on major world economies and slowed the demand for oil worldwide.
Bertuch-Samuels said the governments in the region will have to try to stimulate their economies.
According to IMF statistics, the Middle East North Africa (MENA) region sits on 66 per cent of the world's oil reserves and 46 per cent of its natural gas reserves.
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