'Early warning system must for trade sector'

Abdullah bin Ahmed Al Saleh, Director-General of UAE Ministry of Foreign Trade (MoFT), yesterday called for a common Gulf mechanism to ward off economic crises in the future.

This was one of several suggestions, including a call to maintain foreign trade growth in the Gulf despite the crisis, Saleh made in a speech at the third Investment Horizons International Exhibition & Forum in Saudi Arabia yesterday.

He 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 Dh40.4 billion, representing a growth rate of 12 per cent. Most of the Gulf countries rank among the top 10 trading partners of the UAE. Our volume of trade with Arab countries rose to Dh32.3bn 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 the region. We can also establish centres that promote inter-Arab exports and focus on competitiveness particularly in non-traditional markets."

Saleh also 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. He also referred to UAE policies that have helped strengthen its regional and global commercial and economic presence.

"The UAE has drawn from lessons from the past to maintain a trade policy that focuses on diversity," he said.

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