Global Crisis to Come to an End Due to US Recovery

According to the Foreign Minister, Sheikh Abdullah bin Zayed Al Nahyan, “The recovery in the economy of US which is the world’s largest economy, will bring the global financial crises to an end and is expected to help economies of the countries to leap back including UAE.”

He also added that the problems of the emirate of Dubai regarding debt have been taken care of depicting that the country is united not only politically but also economically and the leadership is committed to deal with all the negative impacts of the global crisis. This will help recover through the crisis in real estate of Dubai as well.

He told, “I believe the (global) crisis will be behind us once the United States recovers and we believe the United States is recovering, which will reflect on other countries.”

According to The Commerce Department report on retail sales, “It is a key to renewed economic growth, was much stronger than analyst expectations for a 0.6 percent rise. Investors also took heart from the University of Michigan consumer confidence index, which registered a rise in December that beat analyst expectations at 73.4.”

“The economic crisis in Dubai is over,” Sheikh Abdullah said, adding that the UAE government was “committed to dealing with the effects of the global crisis” for all member emirates. He said support from the federal government “is proof that the UAE is united politically and economically. It is also proof that UAE remains committed towards local government to deal with effects of the global economic crisis.”

The Government of Dubai last Monday announced that it would pay off $4.1 billion in debt repayments due on an Islamic bond of property developer Nakheel. It said that the Government of Abu Dhabi has agreed to provide $10 billion to support its plans to manage the debt of its flagship conglomerate Dubai World. Financial markets in the UAE and across the world cheered the move. Concerns over Dubai’s debt have since eased.