Dubai economic collapse has little impact on Thailand economy

The Business Bay Executive Towers in Dubai Metropolis

The Business Bay Executive Towers in Dubai Metropolis:

Dubai economic fallout would not affect trading between Thailand and Dubai, according to the Director of the Center for Economic and Business Forecasting (CEBF) of the University of the Thai Chamber of Commerce, Mr. Thanavath Phonvichai.

Mr Thanavath stated that the case of the Dubai World, the main investment company in Dubai,which requested the rescheduling of payments of US$59 billion (2.1 trillion baht) in debts last Friday had to be closely monitored during these two weeks although a clear process had been announced by Dubai government. However, he also said that the situation would depend on the central government of United Arab Emirates (UAE), adding the rescheduling of debt payment could affect the world stock market and gold price worldwide. Additionally, he believed that a clearer operation would bring back a normal situation in Dubai and global countries.

As for the evaluation on Thailand economy, Mr Thanavath insisted that the Dubai economic collapse would not much affect trading and investment between Dubai and Thailand, but it might cause a tiny effect on the overall situation in Dubai market which could diminish Thai investor’s confidence, expecting to make their investment in that country.

As for the global oil price, Mr Thanavath said that the oil price in Dubai would not definitely be affected since the oil price was based on the Organization of Petroleum Exporting Countries (OPEC). Furthermore, the country was regarded as one of the biggest oil traders worldwide in which the oil price in Dubai would remain healthy amidst Dubai‘s economic downturn.

Mr Thanavath continued to say that Thai economy would get the flows of economic improvement next year due to more than 300 billion THB injected by the government in the Strong Thailand Scheme, aiming to help stimulate Thailand economy. He added that Thailand‘s economy would experience a healthy growth of 3%. (NNT)