ID :
117742
Tue, 04/20/2010 - 15:05
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https://oananews.org//node/117742
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UAE to remain an economic powerhouse: Nomura
Abu Dhabi, April 20, 2010 (WAM)- The United Arab Emirates remains one of the region's economic powerhouses, despite the slow-down it experienced during the last 18 months. Its plentiful hydrocarbon resources and successful diversification drive makes it an economy with strong medium-term prospects, Nomura, a Japanese Investment Bank said in a report Monday.
"The economy has experienced a difficult year buffeted by a large drop in oil prices along with rapid de-leveraging and default in its corporate sector and banking sector strains — it is emerging from the crisis in a stronger position," Ann Wyman, Managing Director and Head of Emerging Market Research at Nomura said in a report.
Shocks
Economic activity in the UAE was negatively affected by a number of shocks in 2008-09 that led to a contraction in growth.
The global economic slow-down also brought oil prices down, and with them both the production of and investment in hydrocarbons.
Spill-over effects from the global recession and the contraction in world trade also hurt the transport and logistics sectors. These factors combined, brought about a contraction in economic activity of about 1 per cent in 2009, according to Nomura.
Analysts believe the economic recovery is gaining momentum in the UAE. "We see clear signs of a strong recovery process taking shape in the UAE and the region. We expect the region to recover at a faster pace compared to the US and Europe," Didier Duret, Chief Investment Officer of ABN Amro Private Banking, Global Strategy and Research, told ‘Gulf News’ yesterday.
Nomura expect economic activity in the UAE this year to lag behind some of its Gulf neighbours but the outlook for recovery will likely be aided by the removal of uncertainties surrounding the Dubai World restructuring. In the GCC, Nomura expects Saudi Arabia to achieve a surplus of more than 11 per cent of GDP in 2010 with more expansion next year.
Expansion
" We look for a 2.1 per cent expansion in economic activity, supported by Global economic recovery and demand for commodities The gradual recovery in global growth, which is being led by Asia, will have beneficial effects for the UAE," said Wyman.
Nomura sees confidence gradually returning to the capital markets after the proposed restructuring of Dubai World.
Analysts believe that the recent successful return of Dubai Water and Electricity Authority (Dewa) to the market is an important indicator that companies with strong fundamentals can tap the market.
"The economy has experienced a difficult year buffeted by a large drop in oil prices along with rapid de-leveraging and default in its corporate sector and banking sector strains — it is emerging from the crisis in a stronger position," Ann Wyman, Managing Director and Head of Emerging Market Research at Nomura said in a report.
Shocks
Economic activity in the UAE was negatively affected by a number of shocks in 2008-09 that led to a contraction in growth.
The global economic slow-down also brought oil prices down, and with them both the production of and investment in hydrocarbons.
Spill-over effects from the global recession and the contraction in world trade also hurt the transport and logistics sectors. These factors combined, brought about a contraction in economic activity of about 1 per cent in 2009, according to Nomura.
Analysts believe the economic recovery is gaining momentum in the UAE. "We see clear signs of a strong recovery process taking shape in the UAE and the region. We expect the region to recover at a faster pace compared to the US and Europe," Didier Duret, Chief Investment Officer of ABN Amro Private Banking, Global Strategy and Research, told ‘Gulf News’ yesterday.
Nomura expect economic activity in the UAE this year to lag behind some of its Gulf neighbours but the outlook for recovery will likely be aided by the removal of uncertainties surrounding the Dubai World restructuring. In the GCC, Nomura expects Saudi Arabia to achieve a surplus of more than 11 per cent of GDP in 2010 with more expansion next year.
Expansion
" We look for a 2.1 per cent expansion in economic activity, supported by Global economic recovery and demand for commodities The gradual recovery in global growth, which is being led by Asia, will have beneficial effects for the UAE," said Wyman.
Nomura sees confidence gradually returning to the capital markets after the proposed restructuring of Dubai World.
Analysts believe that the recent successful return of Dubai Water and Electricity Authority (Dewa) to the market is an important indicator that companies with strong fundamentals can tap the market.
