Text size:

  • Small
  • Normal
  • Large

UAE waits on global recovery

The UAE Minister of Economy has criticised a lack of professionalism among countries struggling to solve their financial crises.

The UAE Minister of Economy said yesterday that higher rates of growth would not be possible until struggling countries around the world resolve their financial crises.

Sultan Al Mansouri said if the UAE was to hit its growth target of 4 per cent this year, it needed positive momentum in overseas economies.

“To be able to grow at a much higher rate, we feel the rest of the world must solve their problems,” he said. “Firstly, looking from outside there has been a lot of misfortune in terms of trying to resolve the financial crisis from countries and places we expected to be more professional in how they address these issues.”

Financial markets have been coming under pressure in recent days as the failure of policymakers in the United States to resolve their budget stand-off has spooked investors. Asian shares, oil prices, and the US dollar were all pushed down yesterday as the clock ticks on the October 17 deadline to avoid a historic default.

Mr Al Mansouri was speaking at the UAE Italian Business Forum in Abu Dhabi yesterday, organised as part of a tour of the UAE by representatives from 115 Italian companies in a bid to deepen ties between the two countries.

Italy’s troubles were the other big worry for markets last week ahead of a vote of confidence in the Italian prime minister Enrico Letta. He won the vote in both houses of parliament, easing concerns about the country’s ability to press ahead with ambitious economic reforms.

Mr Al Mansouri said the Emirates “was ready to help and assist” Italy to bolster its economy.

“The UAE is blessed with quite a substantial amount of liquidity and some of the largest sovereign wealth funds in the world are here,” he said. “But what we need is identifying opportunities you have in Italy. We really need to understand … to be able to make a real financial decision.”

Abu Dhabi has in the past been an active investor in Italian business.

Mubadala Development, the strategic investment company controlled by the Abu Dhabi Government, bought a 5 per cent stake in Ferrari in 2005 for a reported €114 million (Dh568m) before selling it back to Fiat, Ferrari’s parent company, in 2010.

Abu Dhabi’s state-owned International Petroleum Investment Company (Ipic) owns a stake in the Italian lender UniCredit through its Aabar Investments unit.

Mr Letta’s government has vowed to push through 50 structural reforms to entice more foreign investment. Among the issues requiring action are cutting labour taxes, which are the highest in the European Union, and cutting the 1,210 days it takes to resolve a commercial lawsuit.

“The government is stable and have a very strong commitment to reform the economy,” said Carlo Calenda, the Italian vice minister of economic development.

Mr Calenda was attending the trip in place of Mr Letta who had to pull out because of the confidence vote.

Mr Calenda also discussed with officials from the Khalifa Fund and Gulf Capital the possibility of investment in UAE and Italian small and medium-sized enterprises with high growth potential.

After nearly two years of recession, Italy’s economy is expected to rebound to slim growth of 0.7 per cent this year, according to the IMF.

tarnold@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 A sign points the way to an outdoor market popular with German visitors on the Polish side of the German-Polish border. Sean Gallup / Getty Images

In pictures: A decade since the European Union went east

May 1 will mark 10 years since the European Union expanded east, taking in countries like Poland, the Czech Republic and the Baltic states as new members. And though the border region between Germany and Poland is flourishing with trade and cultural exchange, the open border has also brought a sharp rise in crime.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National