The new US administration’s economic policies will promote growth, the head of Abu Dhabi’s sovereign wealth fund has told the World Economic Forum in Switzerland.
Speaking in Davos, Khaldoon Al Mubarak, Mubadala’s managing director and chief executive, said that the US, where President Donald Trump has announced a swathe of measures to cut regulation, would lure in investors.
However, the head of the World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala, told delegates that a trade war “would not benefit anyone”, even though Mr Trump has spoken of imposing heavy tariffs on imports. In a session titled Finding Growth in Uncertain Times, Mr Al Mubarak said that when Mubadala looked for growth, its primary focus was on Asia and the United States.
“There’s a clear strategy that the US is embarking on – and that will spur growth in the US. And it will make it very attractive for investors,” he said. “Asia, I think continues to be a very important continent for growth.”
Mr Al Mubarak said that Mubadala and the UAE were committed to “heavy investment in the AI enablement space”. “We're looking at that, and that will spur growth in the UAE and, more importantly in this case, globally,” he said. “And the US will be a massive area for growth in [AI]. I expect the same in Asia and I expect us to follow these pathways.”
Børge Brende, a former Norwegian foreign minister and the World Economic Forum’s president and chief executive, said current global growth levels of around 3.3 per cent were “not bad”, but trailed the average over the previous three decades of close to four per cent.
For US growth it was important that Mr Trump’s plans for tax cuts and reductions in regulation were implemented quickly, according to David Rubenstein, co-founder and chairman of the private equity firm Carlyle. He too thought that Mr Trump’s regulatory changes would have a positive impact.
“He has a big agenda for changing regulations and other things that, I think, will spur economic growth,” Mr Rubenstein said.
Resolving conflicts is key
Conflict in the Middle East and Ukraine were key impediments to global growth, according to Mr Rubenstein, but if progress is made on these, economic growth is likely to “do quite well around the world”.
Dr Okonjo-Iweala warned, though, that there would be no winners if the introduction of tariffs sparked a trade war. She said “openness of markets” was key because “this has delivered for us”.
“I don’t want a tariff war. It will not benefit really anyone – the US or the rest of the world. It’s going to be inflationary,” she said. “In spite of all the challenges and the risks of protectionism, trade has been largely resilient. Eighty per cent of world goods trade is taking place under the WTO’s most-favoured nation status. This is a situation the world needs to preserve.”
She said that despite Mr Trump’s having signed a slew of executive orders in his first day in office, he had yet to impose any heavy tariffs with trading partners, so his actions so far were “encouraging”. Dr Okonjo-Iweala said several factors were necessary for global growth to increase, including macroeconomic stability and fiscal consolidation, as deficits were “getting quite high”.
Diversifying supply chains, something she said the European Union was promoting, would create jobs and reduce the need for people to migrate, she added.
Major honours
ARSENAL
BARCELONA
- La Liga - 2013
- Copa del Rey - 2012
- Fifa Club World Cup - 2011
CHELSEA
- Premier League - 2015, 2017
- FA Cup - 2018
- League Cup - 2015
SPAIN
- World Cup - 2010
- European Championship - 2008, 2012
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Saturday Benevento v Atalanta (2pm), Genoa v Bologna (5pm), AC Milan v Torino (7.45pm)
Sunday Roma v Inter Milan (3.30pm), Udinese v Napoli, Hellas Verona v Crotone, Parma v Lazio (2pm), Fiorentina v Cagliari (9pm), Juventus v Sassuolo (11.45pm)
Monday Spezia v Sampdoria (11.45pm)
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The biog
Favourite food: Tabbouleh, greek salad and sushi
Favourite TV show: That 70s Show
Favourite animal: Ferrets, they are smart, sensitive, playful and loving
Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can
Name of first pet: Eddy, a Persian cat that showed up at our home
Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big
The specs
Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 11.12L/100km
Price: From Dh796,600
On sale: now
If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes. Portland is a 260 km drive from Seattle and Emirates offers codeshare flights to Portland with its partner Alaska Airlines.
The car
Hertz (www.hertz.ae) offers compact car rental from about $300 per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
Parks and accommodation
For information on Crater Lake National Park, visit www.nps.gov/crla/index.htm . Because of the altitude, large parts of the park are closed in winter due to snow. While the park’s summer season is May 22-October 31, typically, the full loop of the Rim Drive is only possible from late July until the end of October. Entry costs $25 per car for a day. For accommodation, see www.travelcraterlake.com. For information on Umpqua Hot Springs, see www.fs.usda.gov and https://soakoregon.com/umpqua-hot-springs/. For Bend, see https://www.visitbend.com/.
UAE jiu-jitsu squad
Men: Hamad Nawad and Khalid Al Balushi (56kg), Omar Al Fadhli and Saeed Al Mazroui (62kg), Taleb Al Kirbi and Humaid Al Kaabi (69kg), Mohammed Al Qubaisi and Saud Al Hammadi (70kg), Khalfan Belhol and Mohammad Haitham Radhi (85kg), Faisal Al Ketbi and Zayed Al Kaabi (94kg)
Women: Wadima Al Yafei and Mahra Al Hanaei (49kg), Bashayer Al Matrooshi and Hessa Al Shamsi (62kg)
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