UAE immune from subprime crisis

Shanghai: The UAE property market will not be affected by the US mortgage crisis, said His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

The vice-president ruled out the possibility of any negative effect on the property market in the UAE, adding: "It will affect many countries, but it will not affect us. We have made arrangements to enable our property market to avoid any such negative impacts."

He also noted that the UAE will not drop its currency's peg to the US dollar "for now", but confirmed the issue was being studied by a committee that will report to him soon.

"Up to now we are still with the dollar. Dropping the dollar peg is not easy. However, a committee is studying the benefits of staying with the peg or not," Shaikh Mohammad told UAE media officials accompanying onboard a plane from Beijing to Shanghai.

He arrived in China's commercial capital as part of his current four-day official visit to the Asian giant.

"Our aim through these visits is to enhance bilateral relations and encourage economic cooperation with friendly countries," he said.

He also noted that the recruitment of Chinese labour was an option.

"We leave the door open for bringing Chinese manpower to the UAE to create a demographic balance, and this is why we are interested in the Chinese labour.

"As the prime minister, I will receive the committee's report to decide the next step," he added.

Shaikh Mohammad left the Chinese capital yesterday after a meeting with the mayor of Beijing and a tour of the Great Wall.

Shaikh Mohammad told the media he was happy to visit China for the second time, referring to his first visit with the late Shaikh Zayed Bin Sultan Al Nahyan in 1990.

He said he noticed the significant changes in China, especially with increasing construction, economic openness and the sophisticated infrastructure.

"To us, China is a modern country with a deeply-rooted history and a powerful economy," he said.