The President and CEO of Institutional International Finance (IIF) said that “the U.A.E’s strong economic recovery and domestic political stability will continue to attract more entrepreneurs and foreign capital”. The IIF are in Dubai to take part in the 2014 IIF Mena CEO Meeting.
“In 2014, UAE is expected to grow more than 4% .” commented by Mr. George T. Abed who is the Senior Counselor and the Director for Africa and the Middle East of the IIF. “Non-oil real GDP growth in the UAE continues to show solid expansion, at roughly 4%. Trade, retail sales and tourism continue to register strong growth and the real estate sector and construction sectors have made a bid turnaround.” Abed added.
IIF officials noted that the Arab spring and regional turmoil has not adversely impacted the economic growth in the UAE and the increasing liquidity will boost loan growth in the country despite bad loans and provisions been on a decline in the banking sector of the UAE. Instead, it has drawn more capital flows into the country. The president of IIF said that, “Political and economic stability of the country has attracted capital inflows from the Middle East. With the growth momentum picking up in recent months, we expect sustained capital flow into the country.”
While the funding of investments associated with collection 2020 are going to be for the most part driven by the general public sector and government connected entities, the IIF officers suggested the banking sector to be even handed in their disposition as a result of over-leverage could lead on to a rise in drawback loans.
Abed stated, “Banks really should measure the enterprise models of businesses on their sustainability as soon as the Expo 2020. Post-event, at least several firms may encounter any slow. ”
Rising net foreign assets
The medium –term outlook of the UAE depends on the global recovery’s pace as well as on the progress realized on financial and institutional reforms. For the GCC as a whole, the IIF officials said the financial position of the oil-exporting countries continues to increase strength with total net foreign assets increasing to $ 2.5 trillion in 2013, equivalent to 95% of the countries’ aggregate GDP.
The recent withdrawal of ambassadors by the UAE, Saudi Arabia and Bahrainthrough Qatar seriously isn’t seen as an momentary problem as well as will most likely not have any serious impact on economic relations among these countries.
The IIF observed of which geopolitical fissures are normal throughout the bigger Arab-speaking place stretching for you to nearby and related nations around the world. Most of these ailments connected with division, weak point and infighting have resulted in your design connected with chances with regard to outdoors local players for you to pass through your Arab-speaking system, as a result growing concerns and improving instability.
The latest realignment of the new regime in Cairo with the boarder interests of the three largest GCC countries is supportive of regional economic and political stability. Saudi Arabia, Kuwait and the UAE have already the supply of essential economic to Egypt and Jordan and have been able to maintain constructive economic relationships with Morocco and Tunisia.
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