UAE Ministry of Foreign Trade (MoFT) Director General H.E. Abdullah Bin Ahmed Al Saleh outlined suggestions to maintain foreign trade growth in the Gulf region amidst the global financial crisis during a speech made at the 3rd Investment Horizons International Exhibition & Forum.

Held under the theme “Investment Horizons & the Gulf Common Market within the Global Financial Crisis,” the latest round started yesterday (Monday, April 27, 2009) and ends today (Tuesday, April 28, 2009) at the Riyadh International Exhibition Center, KSA and the Kingdom Hall of the Four Seasons Hotel. The 2009 edition envisions further diversification of the region’s economic structure through strategic investments. In his speech, H.E. Al Saleh proposed strategies that the Gulf could take to minimize the effects of the crisis and capitalize on current opportunities.

H.E. Al Saleh said: “One important aspect that has helped the Gulf avoid most of the negative effects of the crisis is the active commercial relations among its members. In 2007, trade within the region amounted to AED 40.4 billion, representing a growth rate of 12 per cent. Most of the Gulf’s countries rank among the top 10 trading partners of the UAE. Our volume of trade with Arab countries rose to AED 32.3 billion in 2007, representing a solid 13 per cent growth.”

“There are several steps we can take as a region to combat the present and future effects of a crisis; we could establish a common Gulf mechanism for handling such events, particularly an early warning system for the trade sector. We could manage our industries to complement each other, and encourage diversification so that we can reduce our dependence on products and services provided outside of the region. We can also establish centers that promote inter-Arab exports and focus on competitiveness particularly in non-traditional markets,” added H.E. Al Saleh.

In addition, the Director General called for more market openness, urged attendees to avoid protectionist policies, and encouraged improved relations with developing countries in general and Asian countries in particular. He said the crisis should be used as an opportunity to invest further in trade and commerce infrastructure. The MoFT official also referred to UAE policies that have helped it strengthen its regional and international commercial and economic presence.

“The UAE has drawn from lessons from the past to maintain a trade policy that focuses on diversity. We have been promoting non-oil exports to enhance our competitiveness and integrate more into the global market. Our success in this regard has been commended and certified by several prominent organizations such as the World Trade Organization. While we are also affected by the global crisis to a minimal degree, the Ministry and other key UAE organizations will continue to monitor the impact of the downturn and make the necessary adjustments,” concluded Al Saleh.                                     

H.E. Al Saleh further assured that the UAE Government has excellently handled the hardest phases of the financial crisis and has outlined the appropriate solutions for immediate implementation. He said that the desired results can be slowly seen in the way the business community has started to restore its confidence in the domestic markets. The Director General explained that the government was able to accomplish in just a short period of time what they expected to attain in two years.

The MoFT official expressed optimism and downplayed criticisms on the government’s   capabilities, saying that their achievements spoke for themselves. He affirmed the robustness of the Emirates’ financial establishments, pointing out the absence of any collapse or bankruptcy in the sector and the majority share of local money in bank deposits. He added that the government has pledged to provide guarantees on deposits.  H.E. emphasized that the government remains committed to completing ongoing infrastructural projects and that additional developments would be announced despite the global economic recessions. He finally noted the increase in the 2009 federal budget.

Investment Horizons 2009 partners include the Cooperation Council for the Arab States of the Gulf, the Federation of GCC Chambers, the Council of  Saudi Chambers, the Saudi Arabian General Investment Authority, and the Riyadh Chamber of Commerce and Industry. The forum will discuss the challenges posed by the crisis on Gulf investments as well as their recommended solutions; the role of Sovereign Wealth Funds; the status of Gulf baking services amidst the crisis; and the future of Islamic banking. The event will also analyze Gulf stock markets, the growth rates of the region’s economies, and the significance of both the Gulf Common Market and united GCC currency.