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Shaikh Mohammed orders transfer of Dhs70 bn to the Ministry of Finance

Dubai -The Vice President and Prime Minister of UAE and Ruler of Dubai His Highness Shaikh Mohammed bin Rashid Al Maktoum, has ordered the transfer of Dhs70 billion to the Ministry of Finance so that it can inject liquidity into the national banking sector.

The move followed the instructions of President His Highness Shaikh Khalifa bin Zayed Al Nahyan. The order means that Dhs120 billion (US$32.7 billion) has been provided for the banking sector over the last month. On Sheikh Mohammed's instructions, the Ministry of Finance and the UAE Central Bank have been assigned the task of injecting the liquidity into the banking sector.

Shaikh Mohammed ordered the setting up of a suitably qualified committee composed of the officials of ministries of Finance and Economy and the Central Bank to follow up these instructions, as well as to handle the relevant the Cabinet procedures.

The step further indicates the country's leadership to provide all required guarantees to support the banking sector in the UAE and to protect it from the global financial crisis. It also reflects the quick response of the UAE government in term of providing whatever could guarantee stability for the financial and banking sector in the country.

On Sept. 22nd, the Central Bank allocated Dhs50 billion (US$13.6 billion) as facilities for the banks operating in the country so that they could use them if required, as part of the economic measures taken by the UAE to support the banks to avoid the current global financial crisis.