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| UAE economy grew 7.4 per cent last year |
According to Morgan Stanley report, UAE's economy will recover mildly by 2010. The recent improvement in the global economy, the rise in oil prices, and the stabilisation in domestic markets are helping the economy recover from a slump, report added further.
Banks in the UAE faced a shortage of funds as the financial crisis blocked their access to foreign borrowings and local liquidity dried up as investors speculating on a currency revaluation withdrew cash.
The UAE economy will likely contract 2 per cent this year as oil production declines and the real-estate industry faces "continued" difficulties due to the restricted availability of credit, Jaber said. The economy grew 7.4 per cent last year.
