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UAE Economy is Strong: Shaikha Lubna

ABU DHABI - The UAE’s banking system is sound and plays a crucial role in insulating the local economy against the global financial crisis, Minister of Foreign Trade Shaikha Lubna Al Qasimi said.

The national economy is strong and has achieved a leading position in global and regional trade, thanks to steps taken in past years to encourage sustainable development, reduce bureaucracy, improve openness to the global economy and integration with it, and prepare a “friendly” legislative and regulatory environment, she said.

“The UAE is playing a significant role in international trade despite the current financial crisis,” she said in an interview on Saturday. “The UAE ranks among the top 30 trading economies in the world and ranks first among Arab economies.”

Shaikha Lubna said the UAE’s foreign trade surged by 33 per cent in 2007 to Dh552.9 billion, compared to Dh415.9 billion in 2006. Exports and re-exports, which constituted 22.6 per cent of the country’s Gross Domestic Product in 2007, grew by 31.9 per cent that year to Dh164.6 billion, up from Dh124.8 billion in 2006. Imports of goods and services, including imports into free zones, rose to Dh545.3 billion from Dh414.7 billion over the same period. These trade figures will show a further increase when statistics for 2008 are released, she said.

Economic, political, and geographical factors together with the UAE’s free-market policy and flexible economic and commercial laws have helped the country become the world’s third-largest center for re-exported goods, the minister said.

“Focused attention on trade has bolstered the UAE’s drive to reduce dependence on oil revenues,” she said. “The non-oil sectors are now contributing over 64 per cent to the GDP,” she added.

Regarding low oil prices, she said the UAE has been adopting policies that earned it higher growth rates through projects productive and developmental projects. The private sector is also important for diversifying the economy to help it withstand fluctuations in the oil market, she said.

Shaikha Lubna said that Emirati women have achieved significant business success, managing Dh12.4 billion in investments and more than 11, 000 projects. The proportion of women active in the private sector has risen and will continue to increase.

She also noted that the ministry was keen to bolster contacts between the local and foreign businesses through the work of foreign business councils in the country.