UAE Economy Minister Attributes Inflation to Fuel and Rental Price Increases

The United Arab Emirates (UAE) is grappling with inflation, attributed by Minister of Economy and Planning Sheikha Lubna Al Qassimi to increased fuel and rental prices. The global economic trend is exacerbating the problem, affecting local market prices. Additionally, the minister expressed concerns about the rising number of public joint stock companies, which has impacted market liquidity.

Key Takeaways:

• The Minister of Economy and Planning, Sheikha Lubna Al Qassimi, identified fuel and rental price increases as the primary causes of inflation in the UAE.
• The global economic trend is negatively impacting local market prices, contributing to inflation.
• The Ministry of Economy has suspended the establishment of new public joint stock companies to assess their feasibility and ensure they align with national economic needs.
• Investors who subscribed to shares of newly established private companies without ministry approval may face difficulties, with approximately Dhs15 billion ($4 billion) invested in shares frozen by banks.
• The minister emphasized the growing importance of family companies and encouraged converting them into public joint stock companies to align with new economic legislation and trends.
• The UAE is placing greater emphasis on converting family companies and private companies with good performance into public joint stock companies.

Statistics:

• Approximately Dhs15 billion (US$4 billion) is invested in shares, frozen by banks due to investors subscribing to shares without ministry approval.
• The Ministry of Economy has suspended the establishment of new public joint stock companies to assess their feasibility and impact on market liquidity.
• The global economic trend is negatively impacting local market prices, leading to inflation.

Sources:

• "DubaiPhotoMedia - UAE Economy Minister Attributes Inflation to Fuel and Rental Price Increases"