Abu Dhabi: The exit of Great Britain from the European Union came as a shock to the UAE businessmen and said that it might fuel inflation in the European Union and the Great Britain due to weaker currencies.
“It would have made a lot of sense for Great Britain to remain part of the European Union due to investment opportunities and London remaining as hub for the region but the vote shows that the decision was influenced by parameters beyond economic issues,” said Y Sudhir Kumar Shetty, President of the UAE Exchange speaking to Gulf News.
He said the currencies will be weakened both in the EU and the UK which might fuel inflation and cost of living going up.
“Imports into Euro and the UK will become more expensive.”
“It will be good time for investors from the Gulf region to invest in immovable properties due to weaker currencies and pick up blue chip shares.”
Frank Wouters, Chairman of Benelux (Belgium, the Netherlands and Luxembourg) Business Council in Abu Dhabi said the decision has sent a strong signal to European leaders that they need to do something differently, since the status quo hasn’t worked in favour of popular support.
“Some sort of reform is required, so people see that they are listened to, and also to stop further disintegration of the Union. This might be a further integration into a political union, possibly with a smaller group of core countries, or a solution with more autonomy of member states.”
“For the short term and looking at our situation here, the English expats are enjoying a cheaper pound. For English tourists however, the UAE has just become a bit more expensive.”
Lulu Group has number of investments in Britain, including in Y International, a product procurement company, East India Company and London’s Scotland Yard, which the group bought last year to convert into a five-star hotel.
Group chairman Yusuffali MA said: “Obviously the Brexit will have both positive and negative effect on many aspects of UK, both economical as well as social sphere. But, I as an optimistic investor would say there will be long-term gains with some short term pains. Surely there will be more investments coming into UK. It would be the right time to look at many emerging sectors in UK now.
“I also think that UK would be more flexible and quick in making growth oriented policy changes without having to think about EU structures, this will surely benefit the all round growth of the country.”
Another Indian businessman says Brexit will benefit trade as well as the travel industry. “This is because British pound will be cheaper in the short term as the UK is a very popular destination from UAE it will become more affordable to visit.
“Indian investments in British companies will get a boost as goods and services coming from the UK will be cheaper. Indian companies will benefit as UK companies will be looking for new partners,” said Kamal Vachani, Regional Director ESC Dubai and Director of Almaya Group.
