UAE Minister of Economy H.E. Sultan Bin Saeed Al Mansouri discusses regional inflation at 2008 Arab Economic Forum

Held under the patronage of H.E. Mr. Fouad Siniora, Prime Minister of Lebanon, the two-day forum gathers more than 1,000 prominent Arab private and public sector figures from 35 countries to discuss trade and economic trends and issues in the Middle East.

The UAE delegation includes H.E Mohammed Ahmed bin Abdulaziz Alshihhi, Undersecretary of the Ministry of Economy, and other Ministry officials.

During the event, H.E. Al Mansouri participated in a special session exploring the inflation problem in the Middle East, where he explained the factors causing this economic phenomenon and the challenge of managing it.

'Inflation is disrupting the economic activities of some of the most progressive countries in the world. This phenomenon is an expected product of our region's economic boom; but is being compounded further by other factors such as globally rising food commodity prices, currency pegs, and excessive oil rates. Monetary and exchange rate tools and fiscal options have to be considered with greater caution as they could trigger economic distortions,' said H.E. Al Mansouri.

The UAE Government in cooperation with concerned parties has been extensively working to lessen the impact of inflation in the country.

The Ministry of Economy in particular has been initiating programs such as forging pricing agreements with key retailers of basic commodities and implementing strict consumer protection regulations.

Organized under the theme 'The Arab World: Facing Up To A Changing Global Environment,' the 2008 Arab Economic Forum features six panel sessions covering regional economic priorities; inflation and the currency peg; Arab sovereign wealth funds; sustainable real estate development;

Lebanese economy and prospects; and Arab banking.

A special Arab Investments Forum will be held on the second day after the last panel session to discuss Arab investment prospects, opportunities, and inherent risks and their comparison with other countries and regions; and the investment potential of economies such as Yemen, the Sudan, Mauritania, and Djibouti.

'Some countries have opted to turn to a basket of currencies; others have established reactive policies to stave off the detrimental effects of inflation, especially on unfortunate consumers who are the hardest-hit by this economic condition. Still others are weighing the effects of a currency revaluation. While there is no single cure for the inflation problem as each nation has its own unique economic structure, the only certain actions we must take are to vigilantly monitor regional and global financial trends and act accordingly, taking into consideration both the short- and long-term effects of the policies we choose to adopt; and to collaborate closely so that we can respond as a region to immediate issues,' concluded H.E. Al Mansouri.