Business | Markets

Mohammad reassures investors as stocks rise

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Thursday emphasised the strength of the UAE's economy and the banking sector's resilience to withstand the global meltdown.

  • By Gaurav Ghose, Financial Features Editor
  • Published: 00:27 October 10, 2008
  • Gulf News

Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Thursday emphasised the strength of the UAE's economy and the banking sector's resilience to withstand the global meltdown.

He stressed that the UAE's economy, its banking sector and financial markets are strong and safe, and their strength is derived from a far sightedness vision and flexible laws and legislation that protect local and international investments and capital.

He said the service sector in the UAE is witnessing increasing demand which confirms that the economy and financial and banking establishments are not affected negatively by the developments in global financial markets.

UAE stocks ended higher on Thursday, a day after they fell to their low point of the week, providing investors a breather which most analysts and investors had hoped on Wednesday after the Central Bank cut the repurchase and inter-bank lending rates.

However, traders feel it is too early to say whether it is the beginning of a long road to a sustainable recovery. But on the day yesterday, it proved to be a great relief for all after the sharp losses the markets suffered on the first four days this week, losing more than Dh150 billion.

The Dubai Financial Market General Index gained 3.67 per cent to close at 3,198.09 aided by increases in the prices of all the big names.

Shaikh Mohammad said: "We always launch creative initiatives in all finance, education, technology, media and other fields, and then attract investments from all over the world and at all levels.

"This proves the success and distinction of our initiatives as well as their attraction of Arab and international cadres, which in turn need services, such as health, education, housing, telecommunications and other factors of modern life.

"This makes it a must for us as a government and for national companies to implement more investment and development projects," Shaikh Mohammad said.

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