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Issuing the first amendment ofa law usually takes some time. Rushing things may lead to undesired consequences while delay reflects unnecessary bureaucracy. The pace of passing new amendments to laws bound by international agreements and world systems — for example, the Companies Law -- is determined by the progress of these agreements. Several important international agreements, including a significant number involving the World Trade Organization, are still not ripe. Yet, we are very keen on passing or amending any laws if necessary to strike a healthy balance between our local interests and our commitments to international trade and finance organizations.
Emirates Business 24/7
Speculation about the dirham’s peg to the United States dollar keep flowing back out. What value do you see in keeping the peg in the sh ort term and the long term? Is there any move to change the structure or composition of the peg?
Governed by strict banking principles and guidelines, the UAE Central Bank is taking care of the issue of dirham’s peg to international currencies. The US dollar’s devaluation against the Euro and the pound-sterling during the past few years has triggered several debates about economic threats posed by the dirham’s peg to the dollar. Today, after the dollar’s significant gains against other international currencies, we can barely hear these voices.
There are no absolute wins or absolute20loses to pegging a local currency to a single foreign currency ora currency basket. Decisions are always determined in light of the size of benefits. Emirates Business 24/7
One of the many effective measures taken by the UAE Government to deal with the fallout of the global financial crisis has been to maintain or increase spending on infrastructure projects, even if this leads to a deficit budget. Would the UAE be comfortable with a deficit budget for the first time in many years? Would you immediately put in place measures to wipe out the deficit (if that happens) in the next year? What such measures would you consider?
This is a hypothetical question. Actually, we evaluate all possible scenarios and we are very keen on endorsing a deficit-free budget. Yet I can read between the lines of your question about potential measures to face budget deficit. My reply is: No Income Taxes.
Emirates Business 24/7
The public relations image of UAE and Dubai is being taken to task in sections of the Western press. What is the official strategy of UAE going to be to counter this?
Our strategy in that regard is very consistent, as we strongly believe in the sanctity of truth. Our commitment to transparency is unequivocal and unquestioned. Our ultimate response to these reports can be seen in our relentless efforts and ongoing success. The life sp an of lies is always short.
We have been very transparent with all measures undertaken over the past few months to counter the impact of the global financial crisis. Senior government officials have spoken openly about the current situation, highlighting key facts and figures -- including the actual size of the debts by both the government and government affiliated companies.
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