UAE economy to start recovering next month on government support -

The UAE economy will start to rebound next month in a gradual recovery that could stretch into next year, a top government official said on Tuesday.
"The government's intervention and support in terms of monetary and economic policy will ensure a smooth recovery that will boost investment," Hamad Bu Amim, director-general of the Dubai Chamber of Commerce and Industry, told delegates at a seminar.
He believes that the government's liquidity injection is a step forward that will help the economy to recover by 2010. His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, recently ordered a cut in government fees by 20 to 30 per cent.
Bu Amim said the Dubai Chamber strived to provide the business community with adequate market information to help overcome the current slowdown. This includes advisory services to help companies manage their businesses better.
Fahd Shah, an economic researcher at the Dubai Chamber, quoted from a survey and said business leaders were looking for policies and actions to make business conditions more favourable.
According to the survey these actions should address financial constraints and provide access to government services. These moves will also promote market efficiency and transparency, he added.
Ehsan Khoman, another researcher at Dubai Chamber, said inflation was set to fall this year, allowing authorities to focus entirely on stimulating economic activity and freeing credit markets.
Khoman said the fall in the country's output would only be limited. "The UAE's exposure to sub-prime toxic assets has been minimal relative to Europe and the United States," he said.
"Moreover, monetary policy response has been timely and impressive in scale with the UAE Central Bank cutting the repo rate to one per cent in January." – Gulf News