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| Inflation rate nosedives to 3.5% in UAE |
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| Written by Sheraz |
| Tuesday, 15 September 2009 05:38 |
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The UAE's inflation rate has plunged to between 3.5 and four per cent this year, Minister of Economy Sultan bin Saeed Al Mansouri revealed. "Inflation in the country has fallen noticeably since the beginning of the current year," he said. "The inflation rate ranges between 3.5 and four per cent after exceeding 11 per cent last year. The rate is expected to further fall by the end of the current year." He said the prices of consumer and food products had fallen by between 20 and 40 per cent since the beginning of the year. Al Mansouri said the proposed law that would allow 100 per cent foreign ownership of companies outside free zones in certain sectors was intended to attract major foreign companies and investors. "There will be criteria for full ownership by foreigners, and foreign investors wishing to have full ownership must make a qualitative improvement to the UAE economy. The Ministry of Economy (MoE) drew up the foreign investment draft law and it will refer the final draft to the Cabinet within two months. "We will set up a technical committee at the MoE soon to revise the draft law in terms of technical and legal aspects and study the feedback that we receive before referring it in its final form to the Cabinet. I hope the law will be issued by the end of the current year." Al Mansouri, who was speaking during a visit to the Abu Dhabi Co-operative Society, said supporting non-oil sectors – in particular the service and industrial sectors – was a major priority for the ministry. And he revealed that a new draft industry law had been drawn up. "I hope our economy does not depend only on oil. The contribution of the non-oil sectors to our gross domestic product is growing and this should be encouraged. "The new industry law is ready and will be referred to bodies concerned in a month. It will give a big boost to industry in the UAE, especially in Abu Dhabi and Dubai." He stressed the importance of the industrial sector to the country, adding: "The UAE's economic situation is strong and growing. The government is still able to inject new funds in markets in all sectors and there is major support for the industrial sector." He said food prices had remained stable since the start of Ramadan. "This is attributed to the strategy of the MoE to limit price increases and intensify its control over retail outlets and markets." Al Mansouri said 50 importers and 62 retail outlets had co-operated with the MoE to make the strategy a success and the prices of more than 400 items had been reduced. And the government recognised the importance of maintaining strategic stocks of important foods. "We have a project related to the strategic stock. It will reduce prices and supply the UAE with the main items throughout the year at good prices. In addition, it will prevent sudden increases in prices in our market due to global conditions. |
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