UAE moves to secure markets as bourses continue to decline
UAE's President Shaikh Khalifa Bin Zayed Al Nahyan tried on Sunday to calm investors, saying "the UAE economy is strong and sound and that its banking system is solid and efficient,". He made these remarks following a briefing on the latest developments on the global financial crisis by Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
According to WAM, the UAE Cabinet, headed by Shaikh Mohammad, on Sunday approved a series of preventive steps and measures to serve national interest, ensure continuity of economic growth and protect national economy. Among these measures, the UAE Government will ensure that no UAE national bank will be exposed to credit risks, guarantee deposits and savings in all national banks, guarantee all inter-bank lending operations between banks operating in the UAE and inject sufficient liquidity in the financial system if and when necessary.
"We are determined to protect our financial and banking system out of keenness to preserve the interests of our country and people," Shaikh Mohammad affirmed at the end of the Cabinet session.
Meanwhile the two UAE's bourse continued to drop on Sunday. The Dubai Financial Market Index fell by 5/41 percent to close on 3,025.08 points. Market leader giant real estate developer Emaar share decline by 10 percent on Sunday.
In the other financial market located at the UAE capital of Abu Dhabi, the genneral index fell on Sunday by 2.30 percent.