Government support is one of the key reasons for growing investor confidence

Although it is early days, there are many signs that the world economy is recovering from recession and the worst of the international crisis is over.

This is good news for the UAE and other countries that have been affected by the global economic down-turn. UAE government and business leaders have been pointing to a number of indicators that show the local economy is gaining momentum. These include lower rents and cost of doing business and an improvement in key tourism and retail indicators.

A sign of global confidence in the local economy is the influx of foreign funds into the Dubai and Abu Dhabi stock exchanges, which has significantly boosted these markets in recent months. The commitment of the government and the Central Bank to supporting the economy is one of the key reasons for growing investor confidence in the country. The authorities have been unwavering in their support for the local banking system and have continued to invest in vital infrastructure projects that are the basis of future economic growth.

While markets will always go up and down, the strength of the fundamentals of the UAE economy will serve investors and residents well over the long term.