Medium-term strategy for UAE is good, says IMF
Official says Dubai's growth will come from regional demand
The International Monetary Fund (IMF) said that the medium-term strategy for the UAE economy "remains good", even though it predicted flat growth of 0 to 1 per cent this year.
During a press conference yesterday, Masoud Ahmad, IMF director for the Middle East and Asia, said that in the medium and long term, growth in Dubai would come from growing regional demand in the services and logistics sectors.
"Dubai is much more than real estate. There is a vibrant services sector and a logistics business, and that's something which we will continue to see growth in," he said.
Turning to the request by Dubai World to restructure some debt because of the international downturn, he said that while the global equity markets reacted negatively to the news, they have begun to stabilise.
Ahmad added that he was encouraged by the commitment of Dubai World authorities to continue with the restructuring in a cooperative way, explaining that while it would have some effect on the economy of the UAE in 2010 and also next year, in "the medium-term [the] strategy remains good."
Last year the UAE's non-oil GDP grew about one per cent, and 2010 is expected to see a similar number.
Ahmad also said the IMF anticipates that as economic activity picks up in the rest of the world it will bring about slightly better performance for the Middle East.
