UAE plots new finance laws

UAE plots new finance laws

Laws will regulate financial sector, control flow of 'hot money', and tackle bankruptcy and credit.

June 16, 2010 3:55 by Samuel Potter

The government will soon issue several economic laws to regulate the UAE’s financial sector and control the flow of “hot money” in the national economy, reports Emirates Business.

The paper quotes Minister of State for Financial Affairs Obaid Al Tayer, who told the Federal National Council in Abu Dhabi that the new laws also deal with bankruptcy and credit, and were necessitated by the fallout of the global financial crisis. They will be referred to the Cabinet soon.

The proposed laws were put together by the Ministry of Finance in co-operation with the Securities and Commodities Authority (SCA), the Central Bank and the Insurance Authority.

“We benefited from the many lessons of the global financial crisis, and the ministerial committee tasked with following up the impact of the crisis on the UAE economy is still engaged in monitoring the local and international situations,” said Al Tayer.

“Our economic situation is good. Banks are performing well, the economic indicators are healthy, and growth is continuous and positive. We have to develop our legislations to ensure regulation and control over hot money and credit operations in particular,” he said.