Banks have ample liquidity: Ahmed

Local banks in Dubai have sufficient liquidity to weather a global downturn, the chairman of the Gulf Arab's largest bank and a key figure in its recovery from a 2009 debt crisis said on Monday. 
 
Sheikh Ahmed bin Saeed Al Maktoum, who is also Chairman of Dubai's Supreme Fiscal Committee, also said some local firms still had a way to go to rebound from Dubai's debt crunch. 

A deepening debt crisis in Europe as well as a slowdown in the United States have increased odds for another global recession this year. 

European bank stocks have slumped sharply since July on concerns about their ability to cope with the potential impact of a Greek debt default.   

"(Local banks) have lots of cash and lots of liquidity as well," Sheikh Ahmed told reporters. "We're not directly affected (by Europe) but I'm sure some (foreign) banks which are here could have certain issues. But the world will never be with no crisis." 

Foreign banks "will keep supporting the retail business here because it's good for them," he added.    

Al Jalila oilfield

Meanwhile, Sheikh Ahmed, who is also Chairman of Dubai's Supreme Energy Council, said the emirate's Al Jalila oilfield is on track to begin operations before the end of 2011.

"God willing, it will start this year," he told reporters in Dubai, declining to give production levels. 

The UAE is one of the world's largest oil exporters, producing some 2.6 million barrels a day (bpd).  Dubai currently produces around 100,000 bpd from four existing fields, according to the US Energy Administration.

Debt restructuring

Sheikh Ahmed, who was named chairman of Emirates NBD  in June, said, "I think the core business of Dubai is doing well," he said, citing tourism and exports.

He is also Chairman of Emirates Group. 

Asked whether the worst of the debt problems were behind the emirate - several entities are still undergoing debt  restructuring - he said there was still room to go.  

"Some other companies have some work to do," he said. "For example Dubai World, they have some more years of restructuring, seven, eight years." 

Dubai World signed a final deal with creditors in March to repay its obligations over five to eight years.

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