May 2: Managing the boom

In the second part of this interview with Dr Omar Bin Sulaiman, governor of the Dubai International Financial Centre, he says that high inflation in the UAE is an unavoidable side-effect of the very positive economic growth in the region. Policymakers in the UAE are limited in how they can tackle inflation as the currency is pegged to the US dollar but Omar bin Sulaiman says de-pegging (allowing the currency to free-float on the world markets) would be a knee-jerk reaction.