Hidden agenda behind campaign against UAE economy

The UAE is one of the few countries in the world that achieved a qualitative leap in its economy in the past decade.

The UAE economy has become less reliant on oil and more diversified, with the oil contribution to the Gross Domestic Product remaining static over the past five years, despite the huge rise in oil prices, thanks to the rapid growth in non-oil segments.

Oil contributes only 5 per cent to Dubai's economy, and no more than 35 per cent to the UAE economy, which is viewed as an achievement at all levels and an example to be emulated by countries all over the world.

Besides the economic growth and diversification, UAE companies have managed to strike successful deals on overseas acquisitions. Such an achievement would spark dismay among some parties, who may be divided into two groups.

The first group views the UAE's progress as a challenge to its traditional influence. For the second team, the UAE's success reveals their incompetence and failure to make the most of available capabilities and potential.

However, the UAE cannot help either of the two parties, since the first group, which sees the UAE as a competitor, was the first one to call for opening up markets and liberalisation of trade.

The second group, which cannot keep up with the UAE's progress, should re-evaluate its potential and benefit from the UAE's rich experience. Regrettably, matters do not always go according to the logic.

In the past few weeks, we saw an unfair campaign in some international media that aims to distort facts or to give wrong impressions of the progress and development of the UAE economy, despite knowledge that the UAE has a powerful economy and vast liquidity.

Shy criticism

Notably, this campaign is not new as it started with shy criticism many years ago at some conferences and seminars, yet the current global financial crisis has given the critics an ideal opportunity to become bolder.

Those who read such media reports may think that Wall Street is in Abu Dhabi or Dubai, not in New York.

This is simply because such reports deliberately portray the UAE and its economy in a poor light that is even darker than that of economic conditions in the US and the West in general.

A question arises here: Why does this media target the UAE in particular? It is logical to raise this question when the UAE is taken in isolation from other GCC countries although they share almost identical economic conditions. The six GCC nations are also members of the Gulf Common Market, which means that a defect in any Gulf country would be a reflection on all of them.

The UAE and the other five GCC nations successfully overcame more complicated conditions during the past 20 years. Among these are three devastating wars and a collapse in oil prices that reached $10 (Dh36.7) per barrel.

Yes, we are part of the world, and a very effective part, since we have our distinguished developmental experiment. Subsequently, the global financial crisis affects us as it affects all other countries.

We may feel some impact of the crisis on certain economic sectors such as stock markets. Nevertheless the UAE is dealing with the development of the crisis in accordance with its interests.

Finally, we tell those who try to distort the image of the UAE not to waste their time and effort in spreading wrong information. The UAE economy will continue and the effects of the financial crisis will be overcome successfully.

Dr Mohammad Al Asoomi is a UAE economic expert.

I agree with Dr Asoomi. UAE still remains a haven of stability with diversified and reliable economic fundamentals. I am a long term resident of UAE and consider it my home. However, I have been extremely disappointed by the lack of interest from developers in completing middle-and-lower income housing projects on time, which I think could have avoided the skyrocketing rents that have caused a lot of anguish and hardship to individuals and companies alike. Now, businesses find it difficult to bring in employees because the rents are unreasonable.
Prachi Bhaumik
Dubai,UAE
Posted: November 20, 2008, 10:12

I see numbers and statistics in this comment and they sound credible. However, what I would like to ask you, as well as the rest of the economic experts, is why were people not informed or warned about the financial crisis?
Bubba Hotep
Dubai,UAE
Posted: November 20, 2008, 10:02

I do not think it is a slander campaign. But Dubai has become a celebrity for the past five years, and celebrities get good and bad press. Dubai has enjoyed marvellous exposure in the international media and helped build the popularity, tourism and property market in the UAE. But spreading wrong information like this is not right.
K. Lawson
Dubai,UAE
Posted: November 20, 2008, 09:08

The UAE market is strong enough to withstand the rumours and threats. However, it is also a good time for the UAE and other GCC countries to think seriously about their long-standing common currency issue.
Naveed
,UAE
Posted: November 20, 2008, 08:52

I completely agree with you Mohammad Asoomi that UAE proved to be a great Arabic country that we can be proud of wherever we go. Dubai is one of the greatest achievements we as Arabs had in the 21st century and we should not allow baseless rumours affect our trust.
Emmad
Dubai,UAE
Posted: November 20, 2008, 01:54