“There are two main challenges and both are regional and international. One is political stability in the region, and the other, and more significant one, is human resources and what kind of people we are getting and their capabilities,” said Bin Sulaiman.
On a strategic level, the UAE is currently looking at ways to develop local human resources in the market and at the same time look at attracting high caliber professionals from other countries.
Yet with inflation levels reaching an all time high this year of 9.5 per cent, many individuals are becoming less willing to move their lives and families to the UAE.
“Inflation is just a result of the fast growth,” said Bin Sulaiman. “But we still have a nice safe city to offer in addition to chances of growth and this is one place where you can make a difference and make your dreams come true.”
Bin Sulaiman was not too concerned about the recent drop suffered by the global capital markets, stating that it would not have a major affect on the local regional economies.
“While this region does get impacted by what’s going on in the global economy, as we are part of it, what we have here is massive growth. A big part of the credit issue is psychology…But other conditions are driving growth here,” he said.
He further added that the key factors driving growth in Dubai is the increased demand and need for growth and liquidity and availability of capital. “There’s a lot of growth in overall wealth. Wealth generation in the private sector is massive and this also is driving growth in the region. We also are growing because we are in the emerging markets.”
Bin Sulaiman said the dollar pegging of currencies is being discussed on a GCC level, adding the three countries in the region might end up making that decision. “We need to look at the whole financial sector and its strategy going forward and what serves that strategy going not be hurt by the growth of new ones. “I would argue that these centres will integrate more with each other, which forward.”
Moreover Bin Sulaiman regards the development of new financial centres such as Dubai will reach a point where they will have to integrate. “I would argue that these centres will integrate more with each other, which will grow transparency and increase alignment of regulations and regulators, all of which will ease the flow of business. So this will be good for the global economy.”
More news from DIFCweek:
UAE governor reveals secret to sustain growth
UAE may drop dollar peg
Islamic bankers training to improve Shariah efficiency
Islamic banking still catching on
UAE investment shifts towards the East
DIFC Economic Forum sees gloom and doom outside the GCC
Sunday, November 25- 2007 @ 0:07 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.