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US attacks: UAE gripped by uncertainty

Vimala Vasan

ABU DHABI, Sept. 19

A WEEK has passed since the terrorist attacks on the US. For residents in the UAE, queries of ``how'' and ``why'' have been replaced by ``what will happen next''. The implications of a possible escalation in tensions in the nearby sub-continent is occupy ing everyone's minds.

While normal activities have not been affected, most residents are contemplating on the immediate future -- a scenario reminiscent of the period immediately after the start of the Gulf war in the early 1990s.

Much of the last week has been spent in trying to

establish contact with relatives and friends in the US and ensuring that they are safe. Uppermost in the minds of people here are concerns about the safety of their children studying in the US.

The backlash of hate crimes against Muslims and Sikhs have been also been a major cause for worry. Says Mr Syed Qamar Hasan, an Abu Dhabi resident hailing from Hyderabad, ``My son is

studying in Wisconsin and I have called him several times to urge him to keep a low profile. We pray that everyone is safe and that the US authorities take stringent action against such anti-social elements''. He felt that these developments would put of f many parents from sending their wards to the US for sometime.

Mr Surjit Singh, a Sikh businessman, said that he had

as much sympathy for the victims of last Tuesday's disaster as

for the Sikhs in the US, who have unwittingly become targets of hate crimes.

``I have two friends in New York who tell me they are frightened to come out of their houses. The US has to prevent such excesses by their own nationals before the situation gets out of control,'' he said.

Arabs here are also disturbed by the attacks on their countrymen. Mr Ehab Shouly, a Palestinian working for BMW in Dubai, is worried about his relatives in the US and hopes immediate action will be taken to curb this trend.

``The general feeling here is that but for biased US policies in many parts of the world including West Asia, a disaster of such proportions may never have happened. Its really time they reviewed their policies and not aggravate an already difficult situ ation,'' he said.

Many hope and believe that there may not be a full-fledged war, but are preparing themselves for a possible emergency. Money is being repatriated and may be kept as mere deposits for sometime, as people wait to see how the situation unfolds, according to officials in financial institutions.

Investors here are also pulling out their investments in US mutual funds and other instruments, due to the crisis in the US, but also in part due to the poor performance of some of these instruments, said Mr Suresh Kumar, General Manager, Emirates Financ ial Services.

``I think that for the time being, people will sit on their funds or repatriate them,'' he said. There has been no direct impact on banks here at the moment, but any escalation in tensions will ``bring things nearer home,'' he pointed out. ``This may aff ect retail banking as bank lines and servicing at some banks may be affected.'' He, however, added that there were no palpable signs of nervousness in the sector at the moment.

According to businessmen here the UAE's extension of strong support in the global fight against terrorism and reassurances by OPEC on keeping oil prices stable have elevated spirits.

Mr Ram Buxani, a leading Dubai-based businessman residing in the UAE, points out that the UAE is a safe country and is well known for its moderate and mature policies in the regional and international arena.

``I do not see any change on this count. However, like elsewhere in the world, the major negative fallout will be seen in business and economic activity. A drop in visits by businessmen could lead to the postponement of discussions or finalisation of pro jects or other business activity. This is in the short-term as there is a panic reaction in the markets right now.''

Mr Surjit Singh adds that the UAE is known in the past to buffer its economy against any crisis, as was the case during

the Gulf war.

Hotels and tourist companies have reported a drop in

business due to cancellations as people are not willing to travel by air for now. While industry sources say that this is an understandable response in the given situation, they are worried about the long-term impact of any future tensions as airline, to urism and hospitality sectors are the first victims of any crisis.

Meanwhile, exchange houses are reporting good business as expatriates are remitting more money back home to face any possible emergency. The crash in the value of the Indian rupee has also triggered an increase in remittances to India by over 10 per cent , according to exchange house officials.

``There is an increase in numbers, as more people are remitting money, but the amounts are small. Those with more liquidity are holding on to see if the rupee will slide further,'' said Mr V. Ramamurthy, General Manager of Emirates India International Ex change.

Remittances are expected to continue on an upward swing over the next few weeks, particularly if the war rhetoric rises a few more decibels.

As one resident put it: ``It's like watching a TV serial -- one can only hope that the next episode is not as macabre as the last''.