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Dubai: The latest announcement by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to transfer of Dh70 billion ($19 billion) to the Ministry of Finance so that it can inject liquidity into the national banking sector, will further boost up the economy and work as a deterrent to any possible slowdown in the market, senior officials said on Tuesday.
The order, issued yesterday morning, brings the total amount provided for the banking sector over the last month to Dh120 billion ($32.7 billion). On Shaikh Mohammad's instructions, the Ministry of Finance and the UAE Central Bank have been assigned the task of injecting the liquidity into the banking sector, WAM said in a news release.
"The directive reflects the essence of the UAE's national unity. It also reiterates the country's foresight and commitment for proactively tackling any potential situation in the interest of the people of this nation," Farhan Faraidooni, executive chairman of Sama Dubai, developers of the Lagoons, said.
"The decision also reflects the UAE decision makers' pledge to ensure the country's continuous economic growth and prosperity, and successfully insulating the local economy from any repercussions of the current global financial crisis."
Abdullah Al Hamli, Dubai Islamic Bank CEO, said, "This rapid and significant action by the Government will further ensure that our banking and financial sector is safeguarded from the ongoing global financial crisis. On behalf of Dubai Islamic Bank, we recognise the enormous importance of such actions by the leadership of the UAE, which contribute to continued confidence in the country's long-term economic stability and growth."
Dr Salem Al Shafiei, managing director of Dubai Real Estate Institute, said, "The measure has not only proved our leaders' far-sightedness and ability to make quick decisions, it has also boosted global confidence in our financial sector as a sustainable pillar of the UAE economy capable of withstanding external pressures."
Yousuf Nasr, CEO HSBC Bank Middle East Ltd, "We welcome today's action by the UAE government to further offer support to the UAE banking sector by providing additional liquidity. While we await the details, we have no plans for HSBC to draw against this facility. HSBC remains well capitalised, liquid and well placed to capture the growing business opportunities in the thriving UAE economy."
Hesham Al Qasim, CEO of Dubai Real Estate Corporation and wasl, said: "The decision has greatly contributed to the improvement of the financial market, the impact of which has been reflected over the last two days. This initiative has significantly contributed to building trust and will serve to attract increased foreign investment to the local market."
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