UAE sheltered from economic storm

An economist in the United Arab Emirates (UAE) has reassured investors that it is unlikely to be hit by a global recession.

Fabio Scacciavillani of the Dubai International Financial Centre stated that banks in the UAE have not invested heavily in products such as sub-prime mortgages, which means it does not have not have much exposure to this volatile market.

Speaking to the National, he insisted that projects such as the development of new infrastructure across the country should not be affected by the deepening economic problems.

"The exposure is minimal," he continued.

Mr Scacciavillani was speaking in the wake of what has been dubbed "Meltdown Monday", which saw the collapse of US investment bank Lehman Brothers.

Meanwhile, Merrill Lynch has been taken over by the Bank of America, while AIG is to receive a £48 billion rescue package from the US Federal Reserve.

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