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Dubai: The UAE has never had a bad economic year and this is set to continue, even in the face of worldwide economic pessimism, a top businessman said.
"Since its inception, this country has never had a bad year. Only good years and better years. Unlike the US, UK, parts of the euro zone and Japan, which are believed to be entering a recession, we are not burdened by massive fiscal debt and have reserves to cover any contingency," Khalaf Al Habtoor, chairman of Al Habtoor Group, said.
Al Habtoor said despite the UAE's gross domestic product (GDP) exceeding $164.4 billion and a GDP growth forecast of 6.8 per cent this year, negative analysis is fuelling unnecessary panic.
"Anywhere else in the world these numbers would be a cause for celebration," Al Habtoor noted.
"We are blessed with stable governance, a small population of 4.6 million, a GDP topping $164.4 billion, 50 per cent of which is consumer-driven, as evid-enced by our flourishing retail outlets and automobile showrooms, restaurants full to overflowing and hotels with high rates of occupancy.
Outlook
"GDP growth is forecast to reach 6.8 per cent by the end of 2008 while UAE companies have reported a 44 per cent growth in profits during the third quarter of this year. Anywhere else in the world, these numbers would be a cause for celebration.
"We should not forget that our country represents an incredible success story that has been built on a solid economic foundation. Its industries are too many to list."
The UAE is globally renowned for its impressive real estate market, but new investors have been hard to find in recent weeks with so much doom and gloom flooding the country.
While it is true that stock markets have declined, this is the price the UAE paid to join the global village, Al Habtoor said.
"While it is true that our stock markets have experienced a decline, this is the price we have paid for the benefits of joining the global village. The dip occurred because we opened our markets to foreign investors who took flight when the credit squeeze bit in their own countries, leaving local investors with cold feet," the chairman said.
"Speculation on whether or not the UAE would remove its currency's dollar peg was also a factor. Historically, the highs and lows of our stock exchanges bore little correlation to world markets, while local investors were relatively immune from international business fluctuations. This current uncertainty is solely due to irrational sentiment as most analysts agree that the region will continue to outperform other markets. The clever investor will spot unprecedented opportunities."
Reflecting his optimism and faith in the UAE market, Al Habtoor launched its Dh1.2 billion Al Habtoor Island Resort and Spa on the Palm Jumeirah on Wednesday.
Mohammad Al Habtoor, chief executive of Al Habtoor, also said the company's last four months have seen better sales in all areas than in the same period last year.
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