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Fingers crossed

Fingers crossed

Indicators seem to suggest that the UAE will be having a happy new year in 2010 after bidding goodbye to an economically rough 2009.

December 29, 2009 3:22 by

The UAE is expected to see a 2.4 percent growth in real GDP in 2010, thanks to better economic conditions, higher oil prices and the government’s stimulus packages, according to a report issued by the Dubai Chamber of Commerce and Industry (DCCI). However, the country is estimated to see its GDP growth rate reduce by 0.2 percent by the end of this year, the reports cited the IMF as saying.

“The UAE is one of the first countries in the world to recover from the effects of the global financial crisis. The government has played a crucial role in getting the country’s economy back on track by offering various timely sops and liquidity to the affected economic sectors,” said Hamad Buamim, director general of DCCI.

“The joint efforts by the federal and local governments in meeting the obligations of various government entities have boosted the investor confidence as has the continuation of the government fiscal stimulus packages and lower interbank lending make the outlook for the coming year more promising as we can look forward to a prosperous trading year,” he added.

Investor confidence in the Gulf fell sharply after Dubai World requested a six-month debt delay in November, but rose again after the emirate paid up Nakheel’s sukuk on time, according to Shuaa Capital’s latest GCC Investor Sentiment Report.

“Part one of the December 2009 Shuaa Capital GCC Investor Sentiment Report, which was conducted before the repayment of the Nakheel sukuk was announced, revealed a significant drop of 32.7 points in the GCC Investor Confidence Index, slipping below the 100 point mark, the threshold indicating negative investor confidence, and hitting 98.1 points,” said Oliver Schutzmann, chief communications officer of Shuaa Capital and author of the report.

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