Good infrastructure continues to attract companies to Dubai
Categories: Government Business
Companies are still flocking to Dubai despite difficult times, thanks to the emirate's advanced infrastructure and its status as a major financial centre, a board member of Dubai Financial Services Authority said yesterday.
"The Gulf economy is clearly strong and I am optimistic about it in the long term. Every economy at the moment is suffering major pressures. Dubai and the UAE no different from that. But I do think fundamentals here are good. Dubai is a major international business centre; infrastructure here is very strong. Companies are coming here even in difficult times," said Lord David Currie, DFSA Board Member.
He said the present economic tumult is likely to see the US and Europe as less strong economies and could have a long-term, deep impact unless global economies take effective measures while resisting the temptation to resort to protectionism at the same time.
The present economic turmoil is much different from anything that the world has seen earlier and could run longer and deeper in absence of apt measures, he said.
"This is an unusual crisis. What you saw was that crisis happened because demand fell, whether because governments tried to curb inflation or some other reason. But this time the banking system has corroded. The consequences have spread from there to varied areas – companies restricting spending, cutting back on production etc. I think it still has some way to go. The impact on companies is starting to feel."
Lord Currie said the ongoing crisis is a period of uncertainty and in terms of real economy the bottom could be towards the end of this year or into the next year.
The moves that would facilitate recovery are the policy responses in the US and Europe. "I think there is a need for stimulus activities but much more important are policies that help to restore the banking system, restore the effectiveness of banking system internationally."
He added that there was a need to take measures that restored trust and willingness among banks to lend.
He asserted on the need for economies to resist from protectionism. "The crisis could be as bad as the 1930s provided we resist the temptation to protectionism. If we were to go into protectionim, it could be much longer and much more difficult."
He added, however, that the crisis would bring needed caution into the system.
"The Gulf economy is clearly strong and I am optimistic about it in the long term. Every economy at the moment is suffering major pressures. Dubai and the UAE no different from that. But I do think fundamentals here are good. Dubai is a major international business centre; infrastructure here is very strong. Companies are coming here even in difficult times," said Lord David Currie, DFSA Board Member.
He said the present economic tumult is likely to see the US and Europe as less strong economies and could have a long-term, deep impact unless global economies take effective measures while resisting the temptation to resort to protectionism at the same time.
The present economic turmoil is much different from anything that the world has seen earlier and could run longer and deeper in absence of apt measures, he said.
"This is an unusual crisis. What you saw was that crisis happened because demand fell, whether because governments tried to curb inflation or some other reason. But this time the banking system has corroded. The consequences have spread from there to varied areas – companies restricting spending, cutting back on production etc. I think it still has some way to go. The impact on companies is starting to feel."
Lord Currie said the ongoing crisis is a period of uncertainty and in terms of real economy the bottom could be towards the end of this year or into the next year.
The moves that would facilitate recovery are the policy responses in the US and Europe. "I think there is a need for stimulus activities but much more important are policies that help to restore the banking system, restore the effectiveness of banking system internationally."
He added that there was a need to take measures that restored trust and willingness among banks to lend.
He asserted on the need for economies to resist from protectionism. "The crisis could be as bad as the 1930s provided we resist the temptation to protectionism. If we were to go into protectionim, it could be much longer and much more difficult."
He added, however, that the crisis would bring needed caution into the system.
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