Dubai officials dismiss speculation about bailouts and credit the UAE's resilience to the global financial crisis

Dubai model will go down the river. I am fully aware that some financial and economic circles were not happy with the progress we managed to achieve on various tracks including investment, aviation industry, IT and global competition in mana ging and financial markets. The UAE has proven remarkable competency in addressing difficult questions imposed by the global financial crisis. I strongly believe it won’t be long before international focus will shift from what is claimed to be Dubai’s shortcomings to Dubai’s and the UAE’s overall success in passing this difficult test. By Al-Sharq al-Awsat Daily Almost a year ago, and during your visit to Asia, you warned against the global financial crisis. Why precautionary measures have not been undertaken to avoid negative impacts of this crisis on both Dubai and UAE? The crisis have taken the whole world by surprise and evolved in tremendous pace. During my visit to Asia, I had warned against turmoil in financial and commodities markets, marginalizing the role of international financial institutions and potentials that these institutions fall short from fulfilling their expected roles ina world where all international markets became very much related, turning into one huge global market which does not follow any international rules, regulations or supervision. I had urged leading world economies to move swiftly and reconsider roles and mechanisms of international financial establishments and institutions, especially the International Monetary Fund -- and that what exactly the G20 summit did last month earlier this month. Regarding the precautionary measures, I believe that no preventive measures neither i1n the UAE or any other country in the world, would have provided the desired immunity from the ramifications of the global financial meltdown. The UAE’s solid economic structure, efficient performing establishments, adoption of a balanced model of conservative banking policies overseen by the Federal Central Bank and liberal economic approach, were the key elements that enhanced the country’s ability to survive the negative implications of the global crisis and prevented any case of bankruptcy in any of the country’s banks or major corporations. The impact of the crisis on our economy was significant during the last quarter of 2008, yet it was not as harsh as on other major economies. By Al-Sharq al-Awsat Daily Despite Dubai government officials repeated rebuffs of bailing out some companies to Abu Dhabi, speculations in that regard have never stopped. Isn’t normal for the Emirates to cooperate among themselves to overcome such difficult times? Cooperation among the seven Emirates has never stopped and they don’t wait for crises to show this cooperation. There are several joint ventures between Abu Dhabi and Dubai. Founders and stakeholders of most of the UAE Public Joint Stock companies are from Dubai and Abu Dhabi. Abu Dhabi investors have huge investments in Dubai and vice versa. Dubai has always welcomed business and investments from across the UAE. Regarding the speculations you referred to in your question, they will always remain just speculations. I believe they are meant to be evil gossip as part of a vicious campaign against Dubai model. These speculations were not only refuted by Dubai government officials but also by His Highness the President of the UAE last March. By Al-Sharq al-Awsat Daily Do you believe that the UAE economy will contract this year? Or will it achieve certain HOUSE_OVERSIGHT_024942