SHARJAH, 13 January 2005 — The UAE government is reviewing the companies law as well as legislation and procedures related to share subscription of joint stock companies and foreign investment agreements, Minister of Economy and Planning Sheikha Lubna Al-Qasimi has said. A consultant has been appointed to carry out the task.

In an interview with Al-Khaleej Arabic daily, her first since taking office in November, Sheikha Lubna, the UAE’s first female minister, emphasized the need for enhanced government efforts in dealing with issues concerning economy, commerce and planning in the country.

Admitting that the task was not going to be easy, she said she had utmost faith in her team and her priority was to make sure that economy and commerce serve the best interest of the people.

“Some people may be expecting me to accomplish a miracle,” she said. “However, I have been telling everybody not to expect any miracle because this is not an age of miracles or wonders but an age of scientific and objective thinking and practical steps leading to logical results. Our task is to work on the basis of available data without ignoring the existing situation while trying to achieve the national objectives in a rational manner.”

Sheikha Lubna listed her priorities and said that she was working on several aspects including re-organization following the merger of the ministries of economy and planning in November. “We will do our best to ensure that the economic decisions are not mere reactions to circumstances beyond our control but that they move along a specific track which will aid stability and growth,” she said.

“Our aim is to boost the economy while giving companies more room to move as well as a stronger foundation.” Sheikha Lubna said decisions would be taken after careful study to avoid negative effects.

“We are not aspiring for extraordinary booms which will subside soon and disappear immediately, as was the case before. We want the ministry as well as companies to benefit from experiences and not repeat the mistakes. They should try to innovate and explore new markets,” she said.

“Fulfillment of this ambition calls for the formation of an appropriate body within the ministry,” she said. The ministry was doing this by re-training and equipping a working team that can meet the present and future challenges.

She said a decision had been taken to draft a new companies law and a leading consultant had been assigned the work, which would be simultaneously reviewed by a tripartite committee with representatives from the Ministry of Presidential Affairs, UAE offsets group and her own ministry.

“We are not interested in enacting a law that will be amended shortly thereafter,” she said. “Instead we want to draft a companies law that will suit and serve the private sector and will at the same time be clear, practical and suitable for the UAE following globalization.

“After the law is drafted the next step would be to get the public’s opinion about it, particularly from the trading community and business people. This will precede documentation.”

Separately, in her first appearance before the parliament-like Federal National Council (FNC) on Tuesday, Lubna faced questions from FNC members on matters linked to small investors as well as inflation.

She blamed foreign producers and local importers for the increase in market prices. “The rise in prices does exist and must be dealt with in an objective manner,” she told the assembly. “It has to be carefully studied to find out the factors that have caused it. The external factors such as the weakening of the dollar, strengthening of the euro and effects of the global market should be separated from the internal factors to reach the right conclusions and take sound decisions.

“I am against hasty decisions, as these have a temporary soothing effect but do not provide a lasting solution to the problem.”

The minister also revealed that the Cabinet was conducting a comprehensive evaluation of the salaries of national employees in federal departments.