Abu Dhabi to assess feasibility of investments

Dubai: The global credit crisis will make Abu Dhabi assess the feasibility of existing investment projects, the chairman of Emirates Holdings said on Friday, adding the emirate was also considering mergers in its banking and financial services sector.

Hussain Al Nowais, a board member of the Abu Dhabi Economic Development Council as well as of other governmental institutions in the UAE capital, said the financial crisis signalled it was time to review some of the city's positions.

"I think the credit crisis will help us reflect and make sure the projects we are proceeding with are attractive and feasible," he told Reuters on the sidelines of a World Economic Forum meeting in Dubai.

"I think it's a good time to reflect on our strategy ... help us to consolidate," he said, adding: "The fundamentals of the economy are strong."

Asked whether Abu Dhabi might consider consolidation in its banking and financials sector, Nowais agreed. "Yes, it's a good idea," he said. "You will hear about this soon. There are ideas being discussed."

Speculation has been rife that banks in the region will consolidate as they grapple with tight lending conditions and slower project financing.