Sunday, Dec 07, 2008
Gulf News
Dubai: Despite the air of gloom, businesses in the UAE remain optimistic that the country is in a strong position to weather the global financial crisis.
From real estate to retail and exports, traders admitted a slowdown is imminent, but they are banking on the UAE's strong econ-omic fundamentals, robust reserves and crisis-responsive leadership to put the economy back on track.
Rasmala Investments chief executive officer and founder Ali Al Shihabi earlier said the combined fin-ancial reserves of the GCC economies are massive, so the region can withstand the storm.
Kamal Vachani, director of Al Maya Group, said the slowdown in Dubai's real estate has not reached the retail sector yet, as sales in supermarkets remain robust. "We're not cutting down on jobs. Not all industries are affected by the crisis," Vachani said.
Abbas Ali Mirza, president of the Indian Business and Professional Council, said Dubai's trade with overseas markets, particularly India, is still growing and will continue to do so.
"Dubai has established itself so well that people use it as a hub for their exports. As of now, nothing has changed. As to what will happen next year, I think it's not right to predict anything," Ali Mirza said.
Nikai Group chairman Paras Shahdadpuri said while the UAE has taken steps to keep businesses going amid the downturn, the government needs to find ways for local firms to be globally competitive.
Abdul Rahman Al Tasan, chief executive officer of Rakaa Properties, part of Riyadh-based Rakaa Holding, said the government's move to inject Dh120 billion into the local banking sector, as well as the rising number of financial institutions in the UAE, is also another sign that the country has the capability to "adapt to various scenarios".
Where do you think the UAE stands, in the current financial crisis? Are you hopeful that the global economic crisis would soon end? What should businesses do to survive this difficult period?
Gulf News 2008. All rights reserved.
