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FINANCIAL NEWS
UAE economy to expand over 3% in 2011
08 Feb 2011
(MENAFN) A Senior Executive Director of the UAE Central Bank’s Treasury Department, Saif Al-Shamsi, said that the economy of the UAE is expected to expand by over three percent in the year 2011 and the banking sector is expected to be able to endure the possible difficulties in the future, reported Arab News.
Al-Shamsi said that the UAE’s economy, which is the second-largest Arab economy, was previously affected by the debt crisis in Dubai in 2010; therefore the central bank’s growth forecast for 2011 was lower than the rates expected before the global financial crisis.
Al-Shamsi added that in spite of the global financial crisis, increasing oil prices and the contract made by Dubai World, Dubai’s flagship conglomerate, to reform USD25 billion in debt in September 2010, enhanced the economic outlook of the country.
According to Al-Shamsi, the UAE economy grew by 6.2 percent in 2007 and 7.4 percent in 2008 before being hit by the financial crisis of 2010.
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