UAE. The UAE Central Bank Governor, Sultan Nasser Al Suwaidi, said the country has a dynamic economy which is progressing well, but the real estate sector will be resolved over a period of time.

Speaking during an intercative session organised by the National Media Council (NMC) for foreign journalists from 46 countries, Al-Suwaidi said: " Vis- a-vis the global financial crisis, the UAE has overcame the liquidity problem whereas in the real sector it will take sometime to stabilise, as it can not be resolved immediately".

Al Suwaidi also said "the UAE has a very dynamic economy and it is progressing well," adding  that "time is needed to absorb liquidity since the country is very attractive in the region for tourism and investment."

“The recovery will be determined by not only internal issues, but by regional issues as well. Also the pattern of recovery will be different in various parts of the country,’’ Al Suwaidi said.

Excess capacity developed in the property market during the investment boom, and while the volume of excess capacity varies among the emirates, the economy will absorb them eventually, the Governor said.

Manufacturing industries are showing signs of recovery, and there is significant growth in the trading sectors, particularly among importers and exporters, he added. 

The senior journalists at the press conference were  invited by the NMC on the occasion of the 38th UAE National Day.

Al Suwaidi described the role of the Central Bank as having three major roles to perform, namely: Monetary policy, Reserve management, Banking Supervision and examination.

He said that there are 24 National Banks, 7 Islamic banks and around 28 foreign banks in UAE including few GCC banks and there is open policy for banking licenses operation.

Answering a question on oil supply levels, As Suwaidi said: "The G-20 countries pressurise the Opec members for reducing the oil production. But if we reduce production of oil, the prices go up. Every country must share the responsibility for reducing the imbalances. The imbalances will come down only if the developed Western countries regulate consumption of oil."

On the issue of the Dollar peg with the UAE currency, the Central Bank Governor said: " [The] US dollar is the best medium of exchange in the international trade and we will continue to use it".

Al Suwaidi also confirmed that the UAE was not part of the negotiations regarding the GCC single currency

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