| GEO Business|
| ‘There will be no recession in UAE’, says Al Mansouri|
| Updated at: 0127 PST, Tuesday, March 03, 2009|
ABU DHABI: The global slowdown could prompt adjustments in Abu Dhabi’s economic plans for the next five years, but it will not cause any modification of the emirate’s plan to diversify and expand its economy in the long run, a government official says.
“The principles and priorities for the 2030 plan have not changed,” said Mohammed Abdullah, the undersecretary of the Abu Dhabi Department of Planning and Economy, referring to the long-term blueprint for the emirate.
The Minister of Economy, Sultan al Mansouri, speaking on the sidelines of the forum, agreed. “I don’t think there will be recession in the UAE,” he said, according to foreign media report. “At present, we see stability for at least nine months.”
“The Federal Government has provided liquidity to banks to help the private sector, but unfortunately the private sector still lacks a lot,” said Abdullah al Mansouri, the chairman of Al Nasser Holdings, a construction, industrial and retail conglomerate based in Abu Dhabi.
In some cases, local banks had begun to renegotiate their contracts with borrowers in order to gain more favourable terms, al Mansouri said. “Bank are negotiating on contracts that were signed about two years ago to benefit from the current situation caused by the financial and economic crisis. Of course, the private sector is bearing the cost.”