Dubai: The outlook for the UAE’s economy remains positive, despite the fall in oil prices and slowing global growth, Undersecretary of the Ministry of the Economy, Abdullah Al Saleh, said on Thursday.
“Maybe you see negative indications in the world economy or in the region, but in the UAE all the indications — at least that I know — are on the positive side,” Al Saleh said after opening a new steel pipe mill at Conares’ factory in Jebel Ali Free Zone.
“If you look on the investment side, establishing and starting up new business, the growth of GDP [gross domestic product] or the foreign trade of the UAE, it’s all on the positive side.
“We don’t see the impact of negative indications either in the global economy or in a crisis in the region. We don’t see that impact in the UAE because of the diversity in the UAE and the strength the UAE has in different sectors.”
He acknowledged that growth had slowed — the UAE’s GDP saw 4.1 per cent growth in non-oil sectors in 2015, down from 4.6 per cent in 2014 — but said it was still above both the global and regional average.
His views contrast with economists from Abu Dhabi Commercial Bank, who predict the UAE’s non-oil GDP growth will slow to 2.2 per cent.
But Al Saleh’s positivity was shared by Conares CEO Bharat Bhatia, who also cited the UAE’s diversity as a cushion from low oil prices.
“Dubai was always known for the cross-trade inter-country trade,” he said. “What I’m seeing today is that the ministry level has also been encouraging investors to come in and put a manufacturing unit.”
Manufacturing base
He highlighted the Ministry of the Economy’s efforts to encourage people to promote UAE-made products.
“Any economy is only driven when there is a manufacturing base. One should not get scared of the [oil price] scenario. Things will change five years again; the world will not stop,” Bhatia said.
On the opening of the new mill — only the second in the UAE capable of making 12-inch pipes used in major infrastructure projects — he said, “It is always the right time put a value addition in a company in any part of the world.”
He added that Conares had seen 25 per cent growth in sales tonnage in 2015. “I don’t see any depression or any problem. Yes, liquidity is a concern — what we are hearing is deposit rations are getting a bit tight. But it will change. One cannot wait on the shore and keep on counting the waves; you have to jump in the sea.”
He said the new pipe mill, which upgrades Conares’ manufacturing capability from 4-inch pipes, would help meet demand to come from Expo 2020 and the Dubai Metro expansion.
“We believe there is much demand. There is a need in the industry of a 12-inch pipe mill. It will definitely give us a good market niche,” Bhatia said.
