UAE reasserts strong footing

Dubai: The UAE has proved its inherent strength by measuring up to challenges thrown up by the global financial crisis, Sultan Bin Saeed Al Mansouri, Minister of Economy, told a special gathering of European Union (EU) ambassadors to the UAE.

Prudent economic policies and the leadership's emphasis on diversification were the cornerstone of the emphatic response to difficult situations, Al Mansouri said, observing that the strength of the country's economy has been reiterated by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan on several occasions, the latest being his interview with the Kuwait News Agency (Kuna).

Determination

During the interview, Shaikh Khalifa said that "in respect of the global economic crisis, by virtue of our strong economy, and our prudent management of our public and private institutions, we were able to contain the negative effects of the crisis and overcome many of its results and implications. We have the ability and determination to continue our work in this direction for the completion of the steps we have taken in this area to remove all obstacles that dampen the momentum of the development process," Al Mansouri recalled.

Statistical reflection

Al Mansouri presented to the EU ambassadors figures attesting to the success of the UAE economy. The GDP grew 6.2 per cent in 2007 and 7.4 per cent in 2008 and growth estimates were put at 1.3 per cent for 2009 and 3.2 per cent for 2010, he said.

He emphasized that 2008 growth rates could not be considered a benchmark for comparison if one were to take into account high inflation rates prevailing at the time. The coming period would witness gradual growth to start off with, gaining momentum with time, he added. "The UAE has already taken concerted efforts to meet the challenges arising from the financial crisis. Several practical steps were initiated include guaranteeing bank deposits for three years and injecting liquidity into the banking system whereby Dh120 billion has been earmarked by the UAE Central Bank and the Ministry of Finance," Al Mansouri said.

"We accept any kind of criticism but that must be based on facts and reality and not illusions and speculation," he said, commenting on exaggerated media reports about the country.

He explained to the EU ambassadors the development of the non-oil sector and its contribution to GDP that had touched 67 per cent in 2008.

The meeting witnessed questions and queries from the assembled EU ambassadors who thanked Al Mansouri for his clear explanation and expressed satisfaction with the UAE's attempt to foster transparency.