UAE Economy and Markets ‘Sound’ - Sheikh Mohammed
The UAE economy is able to weather the global economic slowdown and has not been hit by the credit crisis, the country’s prime minister said on Thursday.
Sheikh Mohammed bin Rashid Al Maktoum, also UAE vice president and ruler of Dubai, described the country’s economy and markets as “sound” and said they were “doing well”, state news agency WAM reported.
Sheikh Mohammed pointed to “huge demand” in all sectors as evidence the UAE was not affected by the global slowdown.
“Our national economy, banking sector and financial markets are sound. They draw their strength from a long-term vision, boosted by flexible legislations that protect local and foreign capitals,” Sheikh Mohammed said while touring the Cityscape real estate exhibition.
“Our economy and markets are doing well. Our economic history shows the sound vision of the country’s leadership and the best example for that is the huge demand witnessed in all sectors, especially real estate.”
He said the government was determined to protect the national economy and financial markets.
Sheikh Mohammed’s comments come at the end of a turbulent week in UAE markets.
News submitted by Lorena Rodriguez, P&O Homes
Marios Stavrou said,
November 14, 2008 @ 7:26 am
The UAE economy is sound but under great threat which could spiral out of control depending on the actions of UAE and cetral government. Firstly if we see a slow down in the real estage sector it will have impact on real estate companies. In turn these companies will be forced to downsize by firing people. The UAE sector mainly expat based will differs alot from in that once people get fired they return to back to their contry and hence reducing the need for housing. This could start a down spiral and lead to an economic crash.
Here is some points the government that could implement in order to prevent this:
1. Do not introduce any regulation on the real estate now such as 30% down payments before selling, these regulations will slow down the real estate sector at a time of economic crysis. Postpone this till 2010.
2. Inject capital into the stock market. The stock market is a reflection of peoples confidence, if the shares tumble with no support levels this will dry up liquidity and cause panic. It will effect the economy.
3. Do not limit with rent caps. Lifting rent caps will encourage higher and market related rentals and further stimulate the real estate market.
4. Make VISA’s easier to Dubai, this will encourage more people visiting the region again it will increase economic activity.
5. Encourage expats to bring families to Dubai, certain people below certain income levels are not able to bring their families. There is an untapped market if people bring their families it will stop them sending money outside the country to support their families in other regions. Again will stimulate economy.
6. Lift foreign restrictions on stock market shares, again this will encourage liquidity and boost confidence.
7. Lower the cost of in transit and holiday VISA’s, again you need to encourage tourism.
The Dubai Government needs to take drastic and quick actions if they wish to see their economy booming again.