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Bankers and business leaders hail government support
Leading bankers, chief executives and business leaders across the UAE on Sunday hailed the support for the economy and the financial system announced by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan.
- By Babu Das Augustine, Ahmed A. Elewa andShakir Husain, Banking Editor, Senior Reporter and Staff Reporter
- Published: 00:23 October 13, 2008
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Dubai: Leading bankers, chief executives and business leaders across the UAE on Sunday hailed the support for the economy and the financial system announced by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan.
While reassuring all the stake-holders in the economy of the strength of the UAE's financial system, the president said on Sunday the federal government will ensure that no national bank is exposed to credit risks. Business leaders yesterday welcomed the government's resolve to shield the economy from external risks.
Dr Omar Bin Sulaiman, Governor of the Dubai International Financial Centre (DIFC) and Vice Chairman of the UAE Central Bank, said: "The statement by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan reflects the commitment of the country's leadership to protect the national economy.
"The measures, following a Cabinet meeting chaired by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, on Sunday, will be viewed as a series of significant decisions aimed at ensuring the continued stability, sustainability and growth of the UAE economy. The measures indicate the UAE leadership's deep confidence in the fundamentals of the country's banking and fin-ancial system and the whole economy," he said.
Ahmad Humaid Al Tayer, Chairman of Emirates NBD, said: "This is great news for the UAE economy and the banking sector. The UAE's wise leadership has always made sure that the country and its people are protected from all kinds of risks. In times of crises such as wars and economic turmoil in the past, the UAE government always rose to the occasion to reassure its residents."
Nasser Bin Hassan Al Shaikh, Director-General of the Dubai Department of Finance, said: "At a time when the world is facing unprecedented challenges to the global economic order, the leadership of this country continues to demonstrate vision and foresight in assuring the stability of the nation.
"The bold statement today by His Highness the President provides reassurance to the people of the UAE that our economy is supported by a healthy and robust national banking system. Just as important, the statement also sends a clear signal to the international community that, despite current global challenges, the UAE remains a pillar of economic stability."
Soud Ba'alawy, Executive Chairman, Dubai Group, said: "The government's proactive approach to the global financial crisis is in line with the country's commitment to provide a stable and strong financial services sector. We believe that this directive will reinforce investor confidence, both at a local and international level, and will also ensure the continued sustainability of our banking institutions."
Hussain Al Qemzi, CEO of Noor Islamic Bank, said: "We are grateful for the vision and leadership displayed by Shaikh Khalifa Bin Zayed Al Nahyan and Shaikh Mohammad Bin Rashid Al Maktoum in proactively supporting the UAE banking industry. By implementing preventive measures such as the guarantee of deposits, savings and inter-bank loans, the federal government has sent a clear message to investors emphasising the stability of the UAE's fin-ancial system, and alleviating any ill-founded concerns about the financial health of UAE banks. Decisive actions such as these will serve to minimise the impact of the international financial turmoil on our nation's economy, and allow for the continued growth and development of our country."
Abdullah Al Torreifi, Chief Executive Officer of the Securities and Commodities Authority, said: "The strong assurances given by Shaikh Khalifa Bin Zayed Al Nahyan and the well-considered decision made by the Cabinet of ministers headed by Shaikh Mohammad Bin Rashid Al Maktoum reflect the wise economic policy pursued by the country and provides for confidence among investors and depositors. The decision supports the country's endeavours to become a hub for foreign direct investments, and assures all parties that the economy, the banks, and stock markets are well secured.
"The well calculated move will also assist the economy through the difficult times facing the international markets."
Alaa Oraiqat, Deputy Chief Executive Officer of the Abu Dhabi Commercial Bank, said: "The decision is very carefully planned in every respect and is extremely crucial for the UAE banks at this stage.
"Regardless of the flow of funds, more important is the element of confidence and trust which represents the foremost element for the stability of any banking system, even more important than generating profits or holding excellent balance sheets.
The following step will be the announcement of the procedures of implementation.
"The announcement that came from the highest political level in the country provides evidence that the national economy is well founded and that the leadership is keen to secure its stability."
Trust
Abdul Aziz Al Ghurair, Chief Executive Officer of Mashreq, said: "The time of fear is over and common sense should prevail. A decision of this magnitude is a reflection of the government's trust in the banking industry in the UAE. The government is fully aware that banks in the UAE did not follow the practices of some Western banks, which led to the current crunch in liquidity.
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