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Today the The Dubai Financial Market went up 8.3 per cent as trading opened after government took decisive action to restore investor confidence in the markets and the financial system. (source: Gulfnews: Dubai leads Gulf stocks surge as markets open on a positive note)
Sheikh Mohammad Bin Rashid ordered Dh70b fund transfer to pump liquidity into banking sector and announced on Monday it would guarantee all bank deposits including those with foreign commercial banks that have significant retail operations in the country. (source: Gulfnews: Mohammad Bin Rashid orders Dh70b fund transfer to pump liquidity into banking sector)
The decisions are reassuring UAE residents about their financial situation, at a time when people around the world are worried about their savings. According to bankers, finance professionals and business leaders the decisions are also a major move in boosting investor confidence in the country's economy and financial system. (source: Gulfnews: Investor confidence gets big boost)
Investor confidence gets big boost
By Babu Das Augustine, Banking Editor, Shakir Husain and Suzan Fenton, Staff Reporters
Published: October 13, 2008, 23:28
Dubai: The UAE federal cabinet on Sunday decided that the government will guarantee the deposits with both local banks and international banks having significant retail operations in the country.
Bankers, finance professionals and business leaders welcomed the move and termed it as a major move in boosting investor confidence in the country's economy and financial system.
Malcolm Wall Morris, CEO of Dubai Gold and Commodities Exchange (DGCX),said: "The step is both timely and positive. It is reflective of the government's strong guidance and will further help unlock liquidity. It will assist in accelerating the growth of commodity trade in the region and enable more investors to hedge their risk on DGCX."
Salaam Al Shaksy, CEO of Dubai Bank, said: "The measures offer assurance to bank customers, investors, and members of the UAE's financial community at large, of continued liquidity and overall financial security. By recognising the situation and addressing the potential for trouble proactively, these preventive measures will inject confidence in an already strong economic environment, further sustaining long-term growth and stability."
Hussain Sajwani, chairman, Damac Group, said: "The government of the UAE recognises that stability in the UAE financial market is important in helping the region to be resilient to the effects of the current global financial crisis. The announcement that all assets held in local and international banks in the UAE will be secure, can only help to strengthen investor confidence in this market and this is positive news for all businesses in the country."
Shayne Nelson, Standard Chartered Regional Chief Executive Officer, MENA, said: "Standard Chartered remains a net lender to the interbank market and will continue to contribute in helping with the sustainability of the banking sector in the UAE. Standard Chartered is confident that these steps by the UAE Government will help consolidate the short to mid-term sustainability. We remain well capitalised and have a strong liquidity position. The bank is in great shape and has no direct exposure to the kind of instruments that have led to the current financial turmoil."
Saeed M. Salah Al Deen, Managing Director of ETA Ascon Star Group, said: "In the midst of all this global cry of gloom, the UAE Government has made an unprecedented move to stabilise the financial system even before any negative impact is felt. Looking at the world scenario, investors in the current market might have acted in panic. But the timely move from the UAE Government will definitely help in restoring confidence. Without doubt the UAE economy enjoys healthy fundamentals and thus provides a strong base for business enterprises. It is at times like this that you are reminded of the benefits of doing business in UAE."
Edward Quinlan, Country Partner. Ernst & Young, said: "Unquestionably an excellent move. It has reassured all. Invariably all our clients have responded positively. It has once again proved that the UAE has a very safe investment environment and the country is safer than many other countries in keeping your savings.
Khalid Kalban, chief executive officer of Dubai Investments, said the government's efforts would bolster the economy.
"The timely decision demonstrates that our leaders are fully aware of international events and are more than capable of facing up to global challenges. The government decision to insure UAE banks against credit risks and guarantee the banks' deposits will guarantee the flow of liquidity within the UAE market, and underline the strong fundamentals of our banking and financial system."
Abdullah Al Hamli, Dubai Islamic Bank chief executive officer, said the government has acted in line with the long-term economic goals of the country.
"As one of the leading financial institutions operating in the banking sector, we will continue to support the national economy through our expansion into new markets and further consolidation of our market-leading position in the financial and banking sector of the region," he said.
Sheikh Mohammad Bin Rashid ordered Dh70b fund transfer to pump liquidity into banking sector and announced on Monday it would guarantee all bank deposits including those with foreign commercial banks that have significant retail operations in the country. (source: Gulfnews: Mohammad Bin Rashid orders Dh70b fund transfer to pump liquidity into banking sector)
The decisions are reassuring UAE residents about their financial situation, at a time when people around the world are worried about their savings. According to bankers, finance professionals and business leaders the decisions are also a major move in boosting investor confidence in the country's economy and financial system. (source: Gulfnews: Investor confidence gets big boost)
Investor confidence gets big boost
By Babu Das Augustine, Banking Editor, Shakir Husain and Suzan Fenton, Staff Reporters
Published: October 13, 2008, 23:28
Dubai: The UAE federal cabinet on Sunday decided that the government will guarantee the deposits with both local banks and international banks having significant retail operations in the country.
Bankers, finance professionals and business leaders welcomed the move and termed it as a major move in boosting investor confidence in the country's economy and financial system.
Malcolm Wall Morris, CEO of Dubai Gold and Commodities Exchange (DGCX),said: "The step is both timely and positive. It is reflective of the government's strong guidance and will further help unlock liquidity. It will assist in accelerating the growth of commodity trade in the region and enable more investors to hedge their risk on DGCX."
Salaam Al Shaksy, CEO of Dubai Bank, said: "The measures offer assurance to bank customers, investors, and members of the UAE's financial community at large, of continued liquidity and overall financial security. By recognising the situation and addressing the potential for trouble proactively, these preventive measures will inject confidence in an already strong economic environment, further sustaining long-term growth and stability."
Hussain Sajwani, chairman, Damac Group, said: "The government of the UAE recognises that stability in the UAE financial market is important in helping the region to be resilient to the effects of the current global financial crisis. The announcement that all assets held in local and international banks in the UAE will be secure, can only help to strengthen investor confidence in this market and this is positive news for all businesses in the country."
Shayne Nelson, Standard Chartered Regional Chief Executive Officer, MENA, said: "Standard Chartered remains a net lender to the interbank market and will continue to contribute in helping with the sustainability of the banking sector in the UAE. Standard Chartered is confident that these steps by the UAE Government will help consolidate the short to mid-term sustainability. We remain well capitalised and have a strong liquidity position. The bank is in great shape and has no direct exposure to the kind of instruments that have led to the current financial turmoil."
Saeed M. Salah Al Deen, Managing Director of ETA Ascon Star Group, said: "In the midst of all this global cry of gloom, the UAE Government has made an unprecedented move to stabilise the financial system even before any negative impact is felt. Looking at the world scenario, investors in the current market might have acted in panic. But the timely move from the UAE Government will definitely help in restoring confidence. Without doubt the UAE economy enjoys healthy fundamentals and thus provides a strong base for business enterprises. It is at times like this that you are reminded of the benefits of doing business in UAE."
Edward Quinlan, Country Partner. Ernst & Young, said: "Unquestionably an excellent move. It has reassured all. Invariably all our clients have responded positively. It has once again proved that the UAE has a very safe investment environment and the country is safer than many other countries in keeping your savings.
Khalid Kalban, chief executive officer of Dubai Investments, said the government's efforts would bolster the economy.
"The timely decision demonstrates that our leaders are fully aware of international events and are more than capable of facing up to global challenges. The government decision to insure UAE banks against credit risks and guarantee the banks' deposits will guarantee the flow of liquidity within the UAE market, and underline the strong fundamentals of our banking and financial system."
Abdullah Al Hamli, Dubai Islamic Bank chief executive officer, said the government has acted in line with the long-term economic goals of the country.
"As one of the leading financial institutions operating in the banking sector, we will continue to support the national economy through our expansion into new markets and further consolidation of our market-leading position in the financial and banking sector of the region," he said.
