November 20, 2008, ABU DHABI - A UAE English daily today commented on the UAE's approach to tackling the negative effect of the global economic crisis to restore investor confidence and greater regulation to thwart future threats to its rising economy. Commenting on the issue editorially today, the Dubai-based "Khaleej times" said: "Making an opportunity out of an ongoing global economic disaster, the UAE has come out with a strategy of its own to restore investor confidence and greater regulation to thwart future threats to its rising economy.

"Unveiling a three-year strategic plan, UAE Minister for Economy Sultan bin Saeed Al Mansouri is confident that a series of proactive measures would ensure the country recovers from the global financial turmoil earlier than the rest of the world. "The plan seeks to build stronger partnership with the private sector and prioritise the industrial sector. The government has already provided banks with a cash injection of Dh120 billion and it is hoped that the financial institutions will revert back to their previous generous standards of lending by early next year.

"This comes at a time when the major economies of the world, including the United States, Britain, Germany and Japan are still groping in the dark to come out of an imminent recession. US banking giant Citigroup has hinted at axing 52,000 jobs by the second quarter of next year, as it plans to cut costs by US$50 billion. On the other hand, three major automobile manufacturers of the US, including General Motors, have appealed to Congress to bail them out with at least US$25 billion, in order to stay afloat in the market.

"UAE's talk of bouncing back is not just an assumption. A rock solid investment in infrastructure and government's astute monitoring are the corner stones of its strength. While the UAE banks rely less on external financial markets, thus the government's intervention will help them grow and net big profits. Similarly, the country's industrial sector is relatively insulated from global upheavals. Moreover, Dubai continues to register strong growth in foreign trade by recording an overall trade surplus of Dh56.6 billion in the third quarter of 2008, higher by 25 per cent over the corresponding period last year.

"Al Mansouri's 2008-10 action plan follows the directive of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to FNC to undertake appropriate legislation to protect the economy from upheavals of global markets. "Thus the new strategy is a step in tune with the federation's long-term growth aspirations. Unlike the West, the UAE strategy talks of a flexible mechanism in accordance with local, regional and international changes.

"The UAE leadership's confidence in economy can also be judged from a host of other indicators, and the key among them is the intention on their part to bail out Western nations and their ailing financial institutions worldwide. The UAE remains a hub for big-ticket project financings, and such coordinated strategies will go a long way in stimulating the world economy to bounce back from the brink of disaster. The world needs to go the UAE way!"