Economy of the United Arab Emirates in the view of global financial crisis
Today’s world financial crisis is the lead item of news. Its influence on economic as a whole and
economy of all countries separately keeps the minds of leading experts in sphere of the finance.
Many economists of the West and the Arabian countries consider that the markets of all Arabian
countries are seriously affected by world financial crisis that can be reflected by the negative
image in an economic situation in these countries. Such forecasts are described by that the oil
market, for example in the United Arab Emirates, was the original guarantor of stability of the
economy. But falling of the prices in oil industry has shaken this stability. However, so it has
turned out, that today’s one of the main indicators of crisis for the United Arab Emirates is the
market of the real estate. From this position for today, it is possible to speak about steadiness
and stability. It has appeared, that, despite of fears, that global credit crisis and economic
recession will negatively affect the market of the real estate in the countries of Persian Gulf, in
region are already declared almost 300 large building projects by total cost nearby 130 billion
dollars. From them about 140 projects are in the United Arab Emirates. The volume of investments in
first ten these undertakings is estimated roughly in 54 billion dollars.
Regarding this, it is necessary to note a speech of the chief of representative branch of bank
Eurohypo AG in Moscow Vadim Ulchenko who has declared, that money now is not present either in the
Europe, or in America. They are only in the countries of the Arabian world ». The expert also has
noted that now in the market there was a favorable investment climate for the players owning real
money resources. World financial crisis practically has not concerned the states of Near-Eastern
region. As the USA tries to suspend a sharp delay of rates of economic growth, the countries of a
gulf do not know what to do with a proceeding growth of gross national product.
In spite of the fact, that breath of crisis in any measure is
affecting the United Arab Emirates, it is shown only that active growth of the market of the real
estate was a little slowed down, the price of property which is not valued as it is, has began a
reduction. Even at reduction of prices on the real estate of Dubai, profitableness of investments
into residential properties of this region can keep at a today's level, simultaneously with it the
companies building qualitative objects in areas convenient for construction, will continue to grow,
prosper and involve investors from all world. The Emirates, which have become a business card in the
area, tries to provide the successful future of own projects in sphere of the real estate.
It is important to note also, that world crisis promotes settlement of the legislation in the field
of the real estate. Consequence of it, the market becomes even more transparent, and buyers and
their investments will become even more protected. The important point of influencing perceptivity
of building projects of the United Arab Emirates is remoteness of financial establishments of the
United Arab Emirates from storms of the American crisis. The central bank of the United Arab
Emirates officially confirms independence and absence of rigid attachment of country banks to the
American bank system.
Based almost five years ago, International Financial Center of Dubai also is the original guarantor
of stability of a financial system of the United Arab Emirates.
The country has sufficient volume of financial reserves for maintenance of building branch. Only
gold currency reserves of the Emirates was above 30 billion dollars in the beginning of 2008. The
saved up stock of petrodollars in a national economy also is reliable protection against the
international economic cataclysms.
Nowadays, the states of Persian Gulf represent the large financial center in the Near East. They act
the important role in the world economy and possess, despite of all fluctuations of the prices for
energy carriers, huge currency-financial potential. Here, formed the highly capitalized share
markets. They are formed by owing the three factors: a dynamically developing market economy,
presence of effectively operating a private enterprises and effective legislative base.
Financial crisis in the developed countries which destroyed actions of many banks, have made their
attractive objects for absorption, has solitarily affected activity of sovereign funds of the Near
East. Besides, the government of the United Arab Emirates takes necessary measures on protection of
the country against crisis. Besides being one of luxury tourist directions in the world, without
dependence from economic problems, tourists in the United Arab Emirates will be always.
All these factors are influential enough and obvious already today: in the Emirates crisis is not
felt so sharply, as in other countries. Experts approve, that the United Arab Emirates — the best
place to wait economic cataclysms. Here, a healthy economic growth will begin more quickly, than in
other countries as the monetary stream directs in the United Arab Emirates from all world from the
people who are looking for economic stability in conditions of financial chaos.
