Reactions on Budget

Some government-run schools across the UAE are in desperate need of urgent attention with regards to the quality of instructors and their pay, the academic material as well as general maintainnence of the school facilities and buildings. With this increased budget, the UAE has set its onward march on the right track in order to make sure that our most precious resource —our young nationals — are receiving the best education possible.”

Aber Khalfan Al Hameli, Chairman, Aber Group: The UAE’s 2009 budget should be seen in the light of global happenings which are currently driven by negative sentiments. All of us should hail the 2009 budget considering that the Rulers of this great nation have taken extra care to provide more funds (21 per cent) to ensure continuous growth.

The push for education and services sectors is a refreshing and welcome move and I believe that this will provide the right stimulus for 2009. In the past the government had given push to the banking and real estate sectors and that led to the phenomenal growth of this country. It is now necessary to enter the next level of growth wherein knowledge driven sectors (education and healthcare) will become the growth engines of the GDP.

Yusuffali MA, Managing Director of EMKE Group and Director of Abu Dhabi Chamber of Commerce & Industry: As expected a budget which truly reflects the progressive and visionary leadership of this great country. The very fact that major thrust has been laid on the education and health sectors clearly emphasizes the great importance the Govternment gives to the welfare of its citizens and residents. Also the fact that the budget has been passed earlier than usual, will immensely help each ministry and department to formulate their action plan well in advance to implement them effectively. Already UAE is creating ripples in the international market not only as an attractive investment destination but also as an aggressive investor in major projects and companies world over, and this will trend is expected to sustain for coming years as well. I am sure this budget will further strengthen the status of UAE as one of the most stable and resilient economies in the region with enough fire-power to tide over the current global turmoil.

Dr Nasser Al Saidi, Chief Economist at Dubai International Financial Centre: The budget confirms the strength of the UAE economy and the fiscal soundness of the country which has been posting surplus over the past six years. It also reaffirms the focus of the government on the long-term development of the UAE. The increased emphasis on educational expenditure demonstrates the government’s commitment to develop its human capital. The priority given to the services sector underlines the determination of the government to further diversify away from oil. The speed with which the Cabinet approved the budget demonstrates the efficiency of the government and its positive outlook.

Sunny Varkey, Chairman of GEMS Educational Group: The UAE Cabinet’s approval of the Dh42.2 billion budget for 2009, representing an increase of 21 per cent on the 2008 budget, demonstrates the government’s commitment to sustain UAE’s remarkable growth irrespective of the global financial melt-down. The priority given to the education and services sectors in the new budget once again underscores the visionary leadership’s ongoing efforts to diversify away from oil and build a new generation of educated and healthy citizens capable of keeping the current growth momentum which has already postponed the UAE as a sought-after global destination for education and healthcare. The new budget will also help boost the confidence of the global business and financial communities in UAE’s economy and its progressive, liberal and welfare policies.

Faisal Hasan, Head of Research, Global Investment House: The 2009 budget highlights the government’s emphasis for a broad-based growth so as to de-risk the economy from oil and sustain future growth. The UAE continues to remain one of the most dynamic and diversified economies in the GCC region and these efforts would help build the non-oil sectors such as services and help attract the manpower to the emirate which will help the economy to diversify away from oil and help sustain the growth. The budget did not give further details about other allocations including military expenditure. However, one of the main focus of the government has been on providing adequate training and development so that they are well-equipped in taking up the job both in the private as well as public sector. Services sector always is a major component and growth driver of the developed and emerging markets and UAE allocation to services sector reinforces the stance towards the sector.

Dr. Salwa Hammami, Head of Research, Arqaam Capital: The federal budget approved by the cabinet is the largest budget in the history of the UAE.

It represents a sizeable 20.9 percent increase from the current budget and comes earlier in time so as to give all federal entities the opportunity to begin their respective programs on time. The high levels of investment in general and higher education (Dh9.7 billion earmarked to the education sector) are the same as last year.

Together with the budget’s emphasis on social services (especially health) underscore a far-sighted social vision for the country.