Finance
The two pillars of the UAE economy are oil and financial services. The country has 46 banks in total, of which 22 are local.
Strong links with the United States
H.E. Sultan bin Nasser Al-Suwaidi, Governor of the Central Bank
These are supervised and regulated by the Central Bank of the UAE, which has a Governor and a federal board of directors with representatives from all seven of the emirates.
Currently the UAE is revising its banking law to include electronic transactions, which should make it easier for foreign investors to operate in the banking sector. Governor of the Central Bank of the UAE H.E. Sultan bin Nasser Al-Suwaidi points out that the new banking law will enable a bank in New York, for example, which deals with electronic transactions, to find a very similar legal framework in the UAE.
Al-Suwaidi welcomes foreign investment and participation in the UAE, hoping that new joint stock companies will encourage further foreign ownership. Stock market trading volumes in the UAE are low in comparison with Kuwait, because the UAE is a newer market, he explains.
“Kuwait started its stock exchange a long time ago, so they have the mentality of traders and investors, they buy and sell,” he says. “But UAE investors have the mentality of an asset investor, they buy and sit on the shares. Attitudes are changing here though, and people are starting to think about their ownership in these joint stock companies.”
Al-Suwaidi stresses the strong links between the UAE and the United States. There are already more than 750 American companies or joint ventures and 9,000 Americans working in the UAE. He comments, “The UAE is a center for American exports, it is a center for their corporations in the region, and it is a center for their people in the region.”
Al-Suwaidi would like to foster closer ties with American banks and financial institutions, describing the UAE as a commercial and political ally for the United States. “The UAE should be an important place for American business and investment,” says Al-Suwaidi. “It is important for the United States to distinguish the UAE from the rest of the region.”
