UAE may have seen 'bottom of downturn,' says Morgan Stanley

The UAE's economy, the second-biggest in the Gulf, may have reached the 'bottom of this downturn' and should see a 'mild recovery' in 2010, Morgan Stanley said.

The recent improvement in global economic momentum, the rise in oil prices, and the stabilization in domestic markets are helping the country’s economy to recover from a slump led by the collapse in real-estate and energy prices, Morgan Stanley’s Dubai-based analyst Mohamed Jaber wrote in a note today.

“The strength of the recovery will depend on the momentum for global growth and the timely resolution of imbalances in its domestic real-estate and credit markets,” Jaber wrote.