United Arab Emirates is not diversifying its foreign currency reserves away from the dollar and its real estate problems have been exaggerated, the central bank chief said on Friday. “We are not diversifying our foreign currency reserves. We are sticking to the dollar,” central bank Governor Sultan Nasser Al-Suweidi told Reuters on the sidelines of a finance conference in the Moroccan city of Marrakech on Friday. Asked about problems in the real estate sector in the Emirates, he said: “There are reports exaggerating the problems of the sector but we are OK.” He added: “We are not worried about deflation. The United Arab Emirates economy is very competitive.” Meanwhile, there are no worrying indicators about the UAE foreign trade under the current global financial crisis, Sheikha Lubna Bint Khalid Al Qasimi, Minister of Foreign Trade, affirmed on Friday. ‘'Participation by foreign exhibitors at exhibitions organized in the UAE rose by 30 percent since the start of the year as compared with the same period last year.” “This underlines the vibrancy of the UAE economy and attractiveness of local markets in terms of investment and marketing,'' Sheikha Lubna said during talks with Egyptian Minister of Investment Mahmoud Mohi Al Din. She said government spending on infrastructure during this year had underpinned confidence of investors and local and foreign private sector on the UAE market. ‘'Measures the government has taken to address the world financial meltdown have cushioned the UAE economy and its immunity against challenges,'' she added. She said the UAE market has begun to show preliminary positive signs of riding over the crisis thanks to proactive measures adopted by the government. The two ministers discussed ways of enhancing bilateral cooperation in trade and investment and stimulating private sectors to establish joint ventures in both countries. The Egyptian minister reiterated his country firm desire to further strengthen its trade and economic relations with the UAE. He said Egypt is hosting 455 UAE companies operating in various sectors from real estate, financing and services to communications. He also outlined economic reforms being adopted by the Egyptian government. Separately, Singapore's Chartered Semiconductor Manufacturing on Friday denied a report that it had received a bid for a majority stake from an Abu Dhabi state-owned company. Chartered issued the statement after the Business Times said Advanced Technology Investment Company (ATIC) tabled an offer for up to 60 percent of its shares, valuing the chip maker at 2.45 billion Singapore dollars ($1.68 billion).
