UAE economy to grow despite odds

Abu Dhabi: The UAE's economy is projected to grow by 3 per cent this year, Shaikha Lubna Al Qasimi, Minister of Foreign Trade, said. The minister's statement came at a gathering with international business leaders last Thursday and reported by the ministry later.

It contradicts the most recent International Monetary Fund (IMF) forecast that the economy will shrink by 0.6 per cent this year before recording 1.6 per cent growth in 2010.

She said the government will continue working to improve the country's business environment.

"To the numerous multinational organisations that have chosen the UAE as their base, we promise the introduction of even more mechanisms and policies which will further enhance your productivity and reward your patronage," Shaikha Lubna said.

The minister urged the private sector to maintain its confidence in the UAE. The UAE is home to about 1,300 subsidiaries of foreign-based businesses operating in 30 sectors, according to the ministry. "We're seeing signs of recovery," said local economist Mohammad Al Asoomi, "If they continue we could see a national growth rate of 2-3 per cent. Either way, I still fully expect the UAE to record positive growth this year."