Dubai Economic Development Chief Denies That The Region Is 'Overbanked'

by Philip Morton, Investors Offshore.com

04 January 2002

Speaking on Wednesday, the Director General of the Department of Economic Development in Dubai, Mohammed Ali Alabbar, denied that the United Arab Emirates are 'overbanked' arguing that there is plenty of scope for new institutions, provided their products are innovative.

Mr Alabbar, who also holds the position of Chairman of UAE based Emaar Properties, was speaking at an Emaar extraordinary general meeting, and was criticised by a shareholder for steering the organisation towards an already saturated market. However, the Economic Development chief was vehement in his dismissal of that claim, arguing in a not quite impartial capacity that: 'There is always scope for new players.'

However, Mr Alabbar's assertions were supported by the Director General of the Dubai Financial Market, Essa Kazim, who told The Gulf Today that: 'All banks in the UAE have made profit, and rates remained stable even in the face of a cut in US rates.'

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