UAE money supply rises by $51bn

source Gulf News

DUBAI: The UAE's monetary supply surged by more than 187 billion dirhams ($51bn) during last year, Central Bank data shows.

Over period, the figure rose from 505.64bn dirhams to 692.4bn dirhams, in a move considered to be the fastest monetary growth rate experienced by the country in five years.

"The expansion of industrial, logistical and real estate sectors, coupled with huge economic and real estate progress in the region, in addition to ascending trade revenues and rising current accounts, due to commercial transactions, plus various other facilities, has contributed enormously to the huge liquidity flow into the country," Sahara Group chairman Dr Ahmed Al Samerai said.

"This flow was accompanied by the addition of several different foreign capitals for investment which exceeded $19bn in 2006 alone. This led to an increase in liquidity which keeps flowing into the country as a result of several important factors that are driven by high petroleum revenues."