Police chief savages bankers
UAE Economy Minister says things are looking up, while Dubai police chief says things are still tough and it’s all the banks’ fault. That’s why we love him.
August 31, 2010 2:02 by Samuel Potter
Dubai’s chief of police has savaged UAE bankers and talked down the economic situation, even as the UAE’s Minister of Economy says that he remains positive about the economic outlook, though growth for the country this year will be at the lower end of forecasts.
The National reports that Sultan al Mansouri, speaking at a Suhoor on Sunday, said the country had sufficient reason to be confident about the economy in the second half of the year. “It is clear skies after the overcast conditions that followed the global economic crisis,” he said. “Green shoots are visible all over and the outlook is essentially positive.”
The Minister for Economy confirmed the UAE is finalizing 12 sets of laws to modernize the legislative system. According to Gulf News Al Mansouri said, “Our laws are quite old and should be revised to cope with the current economic situation and to stand up to the market challenges according to the fundamentals of justice.” The new laws seek to address concerns regarding commercial regulations and arbitration, and to promote efficiency, transparency, and investor confidence in the business sector. But, overall, “The UAE has enough reasons to be confident,” he said.
All very promising, though it jars slightly with the views of Dubai’s chief of police. Yes, the chief of police has passed his judgment on the state of the economy.
Long time Kipp favourite Lieutenant General Dahi Khalfan Tamim said at the weekend that Dubai’s courts are full of criminal cases linked to the financial situation. And, “As long as the number of debtors and borrowers grow against inadequate liquidity to pay the debts, we can’t predict speedy recovery,” he said.
There is no quick recovery in sight, the Gulf News quotes him as saying. “The economic crisis might last for seven years due to the current financial situation.” According to the paper, Tamim dismissed the latest figures showing growth in trade, retail and tourism as not being valid signs of a recovery. “We should look at the huge capital invested in giant projects that are facing lots of problems,” he said. “The over-ambitious development projects are behind our crisis, especially in the real-estate sector. Moreover, a number of banks were unrealistic [and] not conservative at all in the way they used to lend to every one [who] pretended that he is an investor or company owner. [As a result, we have ended up] with the current credit crunch. What we have suffered is not a real-estate crisis as everyone said, but it is a banking crisis.”
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