Following a challenging period, the UAE is gearing up for its next phase of growth, and Mashreq Bank's Abdul Aziz Al Ghurair says banks are ready to support expansion.
Lenders across the country have posted strong results for the first quarter despite the Iran war, he told The National at the Make it in the Emirates summit in Abu Dhabi.
“Banks are ready, they have the appetite now,” said Mr Al Ghurair, who is also chairman of the UAE Banks Federation and the Abdulla Al Ghurair Foundation. “There is also support from the government. What we're looking for is a change to the rules and regulations … to make it a lot more attractive, a lot more flexible, to set up industry.”
The war, which began on February 28, heavily disrupted regional economies, with sectors such as hospitality and tourism hit hard. Supply chains continue to face pressure as the Strait of Hormuz, a key waterway for global trade, remains effectively closed.
“I think it's a challenge we've gone through we never planned for, and every time we go through a challenge, the UAE ecosystem becomes stronger and more resilient,” Mr Al Ghurair said. “Now looking back, the learning we have had – it was tremendous.”
The UAE is investing in its industrial sector and expanding efforts to grow it as part of its economic diversification strategy.
The industrial sector's contribution reached Dh200 billion (US$54.45 billion) last year, marking a 70 per cent increase, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, said at the Make it in the Emirates event. Industrial exports from the UAE have grown to Dh262 billion, including Dh92 billion in advanced industrial exports, he said.
Mr Al Ghurair said that the UAE achieved its objective of becoming a major global tourism and aviation hub by setting up key port operations and infrastructure.
“We thought we can always integrate our ecosystem with the rest of the world, but now the time has come, we have to be self-sufficient. We have to be able to produce everything locally as much as possible.
“So our focus now is changed. I think you will see a lot more emphasis on industry and manufacturing made in UAE, which will make us a lot more resilient in the future.”
'Don't sell in a crisis'
Speaking during a panel discussion at the event on Monday, Mr Al Ghurair also stressed that selling during a crisis was a “mistake”.
He urged investors and business owners to “be patient, endure”, and to partner with others.
Also at the same panel, Emaar founder Mohamed Alabbar urged organisations to remain focused on growth but also to ensure they have guardrails in place.
According to Mr Alabbar, of the roughly 40,000 Emaar customers who were paying for their property units, about 1,000 in December requested additional time to make their payments. While that figure went up to 1,200 during the war, it fell to 700 once the ceasefire was announced.
This shows that the situation is positive, but there is a need to stay vigilant and keep monitoring developments, he said.
Mr Alabbar also urged people to keep working hard. “The harder you work, the luckier you get,” he said.
