Prudent policies help UAE sustain strong growth: IMF

(MENAFN- Khaleej Times) UAE economy maintains strong growth due to prudent financial policies and sound economic methodology according to International Monetary Fund.

The UAE continues to achieve new levels of economic growth despite the facts that oil-exporting countries face significant challenges as result of global economic turbulences and falling oil prices.

"The IMF predicted a 2.5 per cent growth for the UAE this year. The growth will improve next year on oil prices recovery" Zeine Zeidane the IMF's mission chief to the UAE said in the latest report.

Shaikh Hamdan bin Rashid Al Maktoum Deputy Ruler of Dubai and UAE Minister of Finance stressed the country's relentless pursuit of development and prosperity for its people and residents.

"The diversified financial and economic policies put in place displayed the country's high ability to cope with the oil exports challenges debt issue coverage on an external and local level at good cost as a result of adopting proactive steps in market liberalisation and deregulation thereby opening up the banking sector to domestic and foreign financial institutions. In fact this raised the efficiency of the financial system and rates of domestic reserves and has contributed to the growth of capital markets and the continuous investment for major infrastructure projects" he said.

The minister said the UAE continues to gradually restructure its financial system through enhancing financial reserves and developing policies to maintain financial and monetary stability and push sustainable economic growth as well as policy reforms in removing oil dependency and laying foundations in implementing VAT.

"The UAE has an important status as active player in economic diversification. Despite being the sixth largest oil exporter the revenues of this sector amounts to 30 per cent of the total financial resources of the country; where the economic and financial indicators confirm unprecedented growth in other sectors" he said.

Shaikh Hamdan said the decline in oil prices is part of the global economic cycle. "The oil-producing countries faced similar cases in the mid-eighties which the UAE overcame thanks to its lead in setting the right methodology managing resources and controlling costs. This phase is a continuous part of the economic cycle which I trust the country will overcome due to its proper planning spending restraints frameworks financial adaptation and creating sustainable government revenues by depending on alternative oil resources" he said.

The UAE's leading sustainable journey received great interest and appreciation at different regional and international levels. During her visit to the UAE last February Christine Lagarde managing director of the IMF also highlighted the wise fiscal policies adopted by the country; that enhanced its competitiveness and made bank assets owned by the local banking sectors the largest of its kind in the region making the UAE the second largest economy in the region and 17th globally according to the World Economic Forum indicators.

SUSTAINABLE GROWTH

UAE continues to gradually restructure its financial system. Policy reforms in removing oil dependency and laying foundations in implementing Value Added Tax. Despite being the sixth largest oil exporter the revenues of this sector amounts to 30% of the total financial resources of the country. The economic and financial indicators confirm unprecedented growth in other sectors. UAE has an important status as active player in economic diversification. UAE is steadily moving towards the path of growth and prosperity. UAE to grow more than double the economic growth in eurozone. -