Pru­dent poli­cies help UAE sus­tain strong growth

The Pak Banker - - COMPANIES/BOSS -

UAE econ­omy main­tains strong growth due to pru­dent fi­nan­cial poli­cies and sound eco­nomic method­ol­ogy, ac­cord­ing to In­ter­na­tional Mone­tary Fund. The UAE con­tin­ues to achieve new lev­els of eco­nomic growth de­spite the facts that oil-ex­port­ing coun­tries face sig­nif­i­cant chal­lenges as re­sult of global eco­nomic tur­bu­lences and fall­ing oil prices.

"The IMF pre­dicted a 2.5 per cent growth for the UAE this year. The growth will im­prove next year on oil prices re­cov­ery," Zeine Zei­dane, the IMF's mis­sion chief to the UAE, said in the lat­est re­port. Shaikh Ham­dan bin Rashid Al Mak­toum, Deputy Ruler of Dubai and UAE Min­is­ter of Finance, stressed the coun­try's re­lent­less pur­suit of devel­op­ment and pros­per­ity for its peo­ple and res­i­dents. "The di­ver­si­fied fi­nan­cial and eco­nomic poli­cies put in place dis­played the coun­try's high abil­ity to cope with the oil ex­ports chal­lenges, debt is­sue cov­er­age on an ex­ter­nal and lo­cal level at good cost, as a re­sult of adopt­ing proac­tive steps in mar­ket lib­er­al­i­sa­tion and dereg­u­la­tion, thereby open­ing up the bank­ing sec­tor to do­mes­tic and for­eign fi­nan­cial in­sti­tu­tions. In fact, this raised the ef­fi­ciency of the fi­nan­cial sys­tem and rates of do­mes­tic re­serves, and has con­trib­uted to the growth of cap­i­tal mar­kets and the con­tin­u­ous in­vest­ment for ma­jor in­fra­struc­ture projects," he said.

The min­is­ter said the UAE con­tin­ues to grad­u­ally re­struc­ture its fi­nan­cial sys­tem through en­hanc­ing fi­nan­cial re­serves and de­vel­op­ing poli­cies to main­tain fi­nan­cial and mone­tary sta­bil­ity and push sus­tain­able eco­nomic growth, as well as pol­icy re­forms in re­mov­ing oil de­pen­dency and lay­ing foun­da­tions in im­ple­ment­ing VAT. "The UAE has an im­por­tant sta­tus as ac­tive player in eco­nomic di­ver­si­fi­ca­tion. De­spite be­ing the sixth largest oil ex­porter, the rev­enues of this sec­tor amounts to 30 per cent of the to­tal fi­nan­cial re­sources of the coun­try; where the eco­nomic and fi­nan­cial in­di­ca­tors con­firm un­prece­dented growth in other sec­tors," he said. Shaikh Ham­dan said the de­cline in oil prices is part of the global eco­nomic cy­cle.

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