Dubai needs no more Central Bank support: Al Tayer

Dubai needs no more support from the United Arab Emirates central bank and conditions in the banking sector have improved, a senior official said on Wednesday.

"No more support is needed for Dubai from the central bank," Ahmed Humaid Al Tayer, member of the Dubai Supreme Fiscal Committee and Dubai International Financial Centre governor, told reporters on the sidelines of a financial conference.

"The federal government has supported banks and there were good results for the banking sector, liquidity and capital adequacy," he said.

Last year, the UAE Central Bank subscribed to half of a $20 billion Dubai government bond programme. Abu Dhabi and its banks provided the rest.

The UAE government and the Central Bank have also taken a range of steps to raise capital and support liquidity in the banking sector since the global crisis hit in 2008.

Concerns eased partly after Dubai World reached a deal to restructure almost $25 billion of liabilities earlier this month.

Tayer also said he expected the UAE's nominal gross domestic product to exceed Dh1 trillion ($272 billion) this year.

This would imply growth of at least 9.4 per cent in nominal terms this year, according to Reuters calculations, after a contraction of 2.1 per cent in 2009.

"The majority of the economy is doing well. There is growth in the trading sector, exports, tourism," Tayer said.
 

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