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Abu Dhabi council calls for more investments in small enterprises
The Abu Dhabi Council for Economic Development has called for diverting cash liquidity surplus in the capital into direct investment through boosting investment awareness.
- WAM
- Published: 00:11 May 25, 2008
Abu Dhabi: The Abu Dhabi Council for Economic Development has called for diverting cash liquidity surplus in the capital into direct investment through boosting investment awareness.
The council reiterated in its recent report that "the chance is now open for specified small enterprise investment by setting up serious productive projects that will contribute in expanding productive base in the economy and curb negative phenomena that accompany economic prosperity".
It added that there should be an advanced and huge bond market that could absorb part of cash liquidity surplus to be used in more productive purposes.
The report said that the results of economic events held recently in Abu Dhabi demonstrated success beyond expectations. It cited Cityscape Abu Dhabi. which showed existence of investment interests from individuals that could be used by public institutions to push forward economic diversification and growth through directing cash liquidity surplus to productive and effectives purposes.
It noted that the Federal and Abu Dhabi Governments' efforts on setting up small enterprises did not deliver, as those efforts did not reach considerable number of individuals ready to invest their money instead of mere consumption.
The report underscored that efforts should focus on creating diversified investment opportunities for individuals willing to invest, indicating that mere incentives do not alone achieve investment nor increase number of small enterprises.
Sole way
It stressed that investment in medium and small enterprises "is the sole way to absorb cash liquidity and prevent it from feeding extravagant consumption. Amid current drop in interest rates and high inflation, new saving methods should be devised to lure individuals".
The report said the hike in volume of cash liquidity reflected on individuals who amassed wealth - a move that spur them to look for investment avenues, which will register revenues.
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