Marios Maratheftis, regional head of research at Standard Chartered, says that without fresh deposits from the UAE authorities of AED100bn ($27.2bn) into the banking system, banks will continue to ration liquidity which will have a dampening effect on chances of any economic recovery.
“The UAE can see a modest recovery in late 2009 if we see this policy response,” says Maratheftis.
A wider recovery in the Gulf economies will not start until 2010, and will be driven by a resumption of strong growth in China, according to Alex Barrett, global head of client research at Standard Chartered.
“China will start to recover in 2010, which will benefit other emerging markets, including the Middle East," he says.
You might also like...
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.