Hubris in the UAE as it claims "immunity" from external shocks
The UAE economy is immune from external economic shocks, according to Hani Al Hamli, secretary-general of the Dubai Economic Council, or DEC.
The council constantly monitors developments in the European debt crisis and its repercussions on the GCC economy, Al Hamli said in a statement. He stressed that there are no direct effects of this crisis on the UAE and many countries in the region because banks operating in the country are not exposed to European credit markets.
However, in terms of economic and trade relations between UAE and EU countries, who are considered major trading partners of Dubai and the country, there are indirect effects that are often related to the flow of capital and investment, as well as bilateral trade, he added. Al Hamli called for coordinated action between GCC countries to reach a common strategy for addressing the external shocks and mitigate its effects on the economies of GCC members, according to the statement.
The statement was issued after the council’s delegation headed by Al Hamli returned from Tokyo after taking part in the joint annual meetings of the International Monetary Fund and the World Bank Group. He said through the IMF-World Bank meetings, the delegation had an opportunity to hold strategic dialogues with experts and stakeholders from regional and international organisations. Al Hamli stressed on the importance of these meetings as they provide valuable opportunities for formal and informal consultations and involved crucial dialogues between representatives of the public and private sectors.
Regarding on the readiness of UAE banks to implement Basel III requirements, Al Hamli has said that the banking sector in the UAE is also committed to the decisions that were made and mentioned that preparations for the full implementation of those requirements would take place next year.