The UAE will be one of the regional economies that will make the strongest comeback from the impact of the global meltdown, according to economists and bankers. According to Turker Hamzaoglu, an economist with Bank of America Merrill Lynch, the UAE is the best positioned country in the region to benefit from the pick-up in global economic activity. Its growth potential is one of the highest thanks to its tax-free, investment-friendly and savings-rich economy.The latest IMF economic outlook says the UAE economy is expected to shrink by 0.2 per cent this year, compared with an earlier estimate of 0.6 per cent. The World Bank expects the country to achieve 2.4 per cent growth in 2010. The GCC is the only region where year to date bond issuance has reported growth, with the UAE accounting for two-thirds of new issuances. While bonds are improving the overall liquidity, banking sector liquidity has been boosted by government support.