IRAQ: War will have little effect on UAE’s trade

By IPS Correspondents Reprint | | Print |

Att.Editors: The following item is by the United Arab Emirates news agency (WAM)

DUBAI, Feb 28 2003 (IPS) - A senior official in Dubai, one of the United Arab Emirates (UAE), has ruled out any reverse effect on the Emirate’s trade movement in the event of a possible war against Iraq.

– Even if trade in Dubai is affected by the war it will be minor and temporary," Sultan Ahmed bin Sulayem, Executive President of Ports, Customs and Free Zone Authority, said in a statement to WAM today.

He drew attention to the fact that the region had experienced in the past two decades two major wars, the first Gulf war between Iraq and Iran and the second one that was of the liberation of Kuwait. ôDespite those wars, the UAE’s trade has not been considerably affected," he said.

Bin Sulayem is skeptical that international insurance companies may hike their premiums, against war risks, on ships sailing towards the Gulf. ôI believe insurance charges will rise a little bit and for a limited period of time," he indicated. He said there is no reason for Lloyds or any other insurance company to increase the rates so sharply because that would affect trade in the region in the end.

Bin Sulayem played down any impact of the unification of customs tariff among Gulf Cooperation Council (GCC) states on Dubai. ôThe GCC’s decision will definitely have a significantly positive influence on movement of goods between member states," he confirmed.

He said he was of the opinion that the tariff unification had integrated Dubai’s market into a much bigger Gulf market, adding that the GCC move would invigorate investment and trade within the region.