(IMRAN KHALID)   

 
  

Ahmed Humaid Al Tayer (pictured above), Chairman of the Emirates NBD bank, warned Gulf nations will have to review their monetary policies and drop their currencies’ links to the US dollar if inflation is to be brought under control.

 

“Revaluation of GCC currencies cannot be a long-term solution because the dollar value is expected to decline for a long time due to the high US budget deficit and military expenses,” he said.

 

Speaking at the bank’s first annual general meeting (AGM) after its merger last year, Al Tayer called on UAE policy-makers to tackle the increasing inflation in the country, which was being fuelled by growing government expenditure, as well as the continuing peg to the depleting dollar.

 

He said imported and domestic inflationary pressures and the risks of a recession should be addressed immediately in order to guarantee the continued growth of the national economy.

 

Al Tayer also highlighted major developments in UAE’s banking sector, citing statistics showing the total assets of banks operating in the country reached $337 billion (Dh1.2 trillion) in 2007, an increase of 45 per cent compared to 2006. He added he expected total assets of UAE banks to reach $420bn this year.

 

Emirates NBD shareholders yesterday approved a cash dividend of 35 per cent in addition to a share dividend of 15 per cent of the nominal value of shares.


The financial results of the lender for the year ended December 31, 2007 were also approved at the AGM.