Impact of the global financial crisis still causing jitters for UAE

global-financial-crisisOn Wednesday, the central bank governor of the United Arab Emirates said that the impact of the global financial crisis was still lingering upon the Mideast's second-largest economy and the growth would be restricted this year.

Sultan bin Nasser Al Suwaidi told reporters on the sidelines of an Islamic banking event in Sharjah, one of the sheikdoms making up the U. A. E, "We are still in a crisis, though it's less intense now. Banks may need to take further provisions this year."

Previous year, the sharp downturn in Dubai real estate prices and lower revenue from oil hit the economic growth in the U. A. E. As per the Zawya Dow Jones calculations, Abu Dhabi that pumps most of the U. A. E.'s oil, earned approximately $43 billion for exports of crude previous year.

He told, "There won't be big growth in the economy. The rates won't be high. Markets have started to stabilize worldwide and this will be reflected in the U. A. E. We should not talk about inflation."

In the month of December, the U. A. E.'s economy minister Sultan Mansouri told that previous year the economy was predicted to grow by 1.3% and 3.2% in the year 2010. On Wednesday, Al Suwaidi, who is one of the most experienced and senior officials in the emirate, added that after the average cost of property in hot spots like Dubai dropped by 50% previous year the prices of home in the U. A. E. were once again reasonable.