Tuesday , November 24 2020

UAE GDP could rise by 4.2% in 2019



UAE GDP could rise by 4.2% in 2019

UAE GDP could rise by 4.2% in 2019

Central Bank Governor Egypt (CBE) Mubarak Rashid al-Mansouri expects growth of 4.2% next year compared to 2.8% this year, up 1.4%.

In a statement to reporters on the margins of the International Finance Summit in the Middle East and North Africa (MENA) in 2018 on the international financial market of Abu Dhabi on the island of Al-Mariya, Abu Dhabi, he pointed out positive aspects of interest rate increase, banks to attract more funds and investments from abroad, Non-residents, which amounted to 205 billion dirhams.

In response to the question of the effect of raising the interest rate in the economy, he stressed that government incentives that were adopted to help the economy grow and interest rates are usually not passed on to the same percentage of beneficiaries, but less because of sufficient liquidity in the financial system qualify banks to give competitive prices.

He reiterated the continuation of the dirham client for the dollar, and the decision to link the dirham is fixed and the government's decision. There is no plan to change or change the main interest rates individually after changing the bank's authority in accordance with the new law.

In response to journalists' questions on private sector lending, he pointed out that all indicators indicate that the private sector in the country has achieved positive results, since crediting by September last year rose to 6.5%.

He stressed no effect on the domestic market or the banking sector as a result of imposing sanctions on Iran. He said he did not expect any tangible effects in the trade or banking movement, as banks had similar experiences in the past and had no effect.

"Banks are acting cautiously as to whether there are sanctions or not, and there is a link between local banks and their correspondent counterparts in the United States," he said. "We have to wait a bit longer to continue the functioning of Iranian banks in the country.

Control indicators

He stressed that the control indicators in the Central Bank regarding credit concentrations confirm the balance of banks on various finances and exposures to the sector, including the real estate sector.

He revealed that after the issuance of a new law in cooperation with the UAE, the UAE developed a comprehensive definition of property types from residential and commercial buildings, as this determines the form of approved financing. He emphasized that this definition is now a priority for the Central Bank, and the current prices are appropriate.

"We need to help this sector improve its position by providing funding, but it requires financial data and budgets," he said. "It is difficult to allow banks to approve financing without guarantees and this leads to the financing of large interest that does not encourage business owners."

On the law of public debt and the need to issue succus or bonds, the central bank is the role of a government mediator if it decides to issue any succes, bonds or debt securities after issuing a law on public debt. He pointed out that the new law of the Central Bank redefined all precautions and all precautionary elements are already included.

In response to a merger issue between Commercial Bank Abu Dhabi, Al Hilal and the National Bank of the National Bank, it was premature to discuss the merger between the banks of the National Union and Crescent and Abu Dhabi Commercial Bank, but it is expected that the merger will result in two banks.

Investment flows

HE. Ahmed Ali Al Saiegh, UAE State Minister and Abu Dhabi Global Market Chairman, held a speech at the Summit, in which he pointed out that the UAE is the main destination for foreign direct investment inflows. Over the past year, the FDI inflow was about $ 11 billion or 22% of the UAE also managed to jump 10 places to reach 11th place in the World Bank for ease of doing business, the sixth time in a row leading the countries of the Arab world, a leap that contributed supporting large institutions and promoting economic diversification and innovation in the region. The state, stimulating the aspects of investment in projects and the development of the company.

He pointed out that the UAE contributes about 70% of the total investment in digital development projects, in addition to Saudi Arabia, Lebanon and Egypt. He pointed out that the UAE recently witnessed economic development, strategic initiatives and laws that contribute to the growth and increase of investor confidence in the United States economy.

Al Saiegh stressed the achievements of Abu Dhabi's global market, pointing out that the market ended the third year, a period in which we achieved a lot of achievements, including the launch of the first integrated framework in the region for risk capital fund managers, the first special system for investment property funds, the Regulatory a framework in the region for the operation of financial technology companies, the first framework for regulating trade in encrypted assets and the launching of many other systems to meet the needs of different to the business sector in the country and the region.

He pointed out that the market strategy for supporting the Chinese Belt and Travel Initiative attracted the attention of the government of Jiangsu Province, which has the second highest GDP in China, which has established a platform for financial services in the market.

We continue to work with the Shanghai Stock Exchange to establish a global exchange on the Abu Dhabi global market to support the Belt Initiative and Roads. The market continues to attract large financial institutions into its colorful community.

Read also:

The economy of UAE at the highest level in 3 years due to oil and Ekpo 2020
Promising indicators for the UAE economy by 2022


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