UAE economy can withstand financial crisis, says Sheikh khalifa

ABU DHABI - The president of the United Arab Emirates said in comments published on Tuesday that the budget for 2009 will be the largest in almost four decades despite the global economic crisis.

"We can record that the federal government budget for 2009 will be the highest since the federation's establishment in 1971," Sheikh Khalifa bin Zayed al-Nahayan told the London-based Al-Hayat newspaper.

He said the oil-rich country, which has been hit by plunging crude prices, would not scale back government spending on infrastructure and public projects.

The UAE government announced in October it has adopted a budget of 42.2 billion dirhams (about 11.5 billion dollars) for next year.

"The slump in oil prices and the global recession will not sidetrack us from providing the budget without any cuts," Sheikh Khalifa said.

He said the country's economy was strong and could weather the financial crisis and the decline in oil prices, adding that demand for crude would rise in the near future, asserting the crisis is a temporary matter.

"The UAE has a solid economic base that can withstand the effects of this crisis. This crisis is temporary, however long it will be, and the oil producing countries must be prepared for a high rise in global demand when the world markets recover."

However the financial crisis has taken its toll on stock markets in the Gulf country, which are at four-year lows.