Those that are net users of energy, which could have benefitted substantially from the vastly lower energy. Lastly, the paper tries to single out the new business sectors for the diversification and the development of the uae s economy. Cio office investment outlook 2018 best bank in dubai. Dubai s economy fared better in 2017, thanks to a recovery in world trade, which is forecast to grow 4. Uae banking system outlook remains stable on economy, capital and profitability 07 nov 2018 difc dubai, november 07, 2018 moodys investors service has kept its outlook on the united arab emirates banking system at stable, reflecting a gradually recovering economy, as well as banks strong capital, resilient profitability and solid funding. The countrys real gross domestic product gdp is expected. Diversification and development of the uaes economy munich. Dubai s economic growth will accelerate in 2019 and 2020, with tourism, logistics, transport, wholesale and retail sectors replacing the real estate as main growth driver next year, official data. A slowdown in the annual percentage growth in three out of the five largest economic sectors within dubai has led to the overall growth rate slowing. Abu dhabi and dubai announce packages to bolster economic activity, published on 7 june 2018. The direct impact on the uae economy through airline traffic, tourism, real estate investment, and the financial sector is expected to be limited as trade with qatar accounts for less than 1 percent of the uae s total trade. Risks around this forecast are broadly balanced in the near term, but are skewed to the downside over the medium term. Uae economic challenges to persist in 2018 business.
This is a notable shift, because as recently as late 2017 dubai was experiencing higher inflation than abu dhabi. Other factors that have challenged the uae economy include among other, the regional security issues and the trade war between the us and china, these are. Several economic officials and analysts have affirmed that the outlook for the uae economy is highly positive despite global headwinds. The economy is projected to contract this year as both the oil and nonoil sectors shrink amid dissipating. United arab emirates economic outlook focuseconomics. United arab emirates a new growth model is needed institute of. Firstly, the trajectory of the global economy, which seems to be slowing and faces challenges from the.
Banks incorporated in abu dhabi and dubai hold the lions share of total domestic assets. A possible transfer of power in abu dhabi from the current ruler, who is in poor health, to the crown prince will go smoothly. The more positive global growth environment should support somewhat stronger oil demand. Dubais economic growth will accelerate in 2019 and 2020. On the other hand, the uae economy is expected by the eiu to grow by 3. Gcc macro economic outlook 7 the outlook for the gcc economies at the start of 2018 is constructive. Economies around the world are being battered by two black swan events at the same time. United arab emirates economic forecasts 20202022 outlook. The middle east and central asia regional economic outlook reo is. Positive outlook for uae economy in 2019 news khaleej. Global and regional outlook for uae economic forum 2019. This follows a number of other announcements over the last few weeks including a new stimulus package for abu dhabi.
Oil production capacity is expected to increase and the strength of the nonoil economy will boost prospects particularly later in the forecast period as megaproject implementation ramps up ahead of dubai s hosting of expo 2020 expected to draw in 25 million visitors. By the year 2021, the uae will benefit from a sustainable and diversified economy, flexible in adopting new economic models, and capitalising on global economic partnerships to guarantee longterm prosperity for current. The gcc in 2020 outlook for the gulf and the global economy. In view of the ambitious outlook of the economy and.
Equity strategy expect high single digit returns in the us and low teen returns in ems. We also take a deep dive into the economic impact of the vat roll out in the uae and saudi arabia. Sharjahs economic outlook, united arab emirates, snapshot. Global and regional outlook for uae economic forum 2019 december 2019 the goldman sachs group, inc. The analysis will show that the emirates growth rate has been.
The uae s economy continues to slow down as a result of low oil prices and fiscal consolidation weighing on nonoil growth. World economic outlook for 2019 and 2020 according to the latest imf world economic outlook,1 global output is estimated to have grown by 3. Why improving fiscal institutions is critical to the middle east and central asia. Sheikha lubna khalid al qasimi is minister for the economy in the united arab emirates. Uae and some of the worlds economic giants such as the united states, the uk, the european union, china, japan and other asian countries which are experienced in terms of readiness in managing risks and global economic shifts in the future. Emirates nbd, dubai s biggest lender, uses purchasing managers surveys as a snapshot of business conditions, said khatija haque, its head of middle east and north africa research. Sami al qamzi, director general, dubai department of economic. It also features the uae s strong capabilities in terms of readiness to cope with change. Nobody knows how dubais economys been doing lately. With some caveats, the early data suggests that the inflationary impact of the tax has been contained, the impact on growth is limited and in saudi arabia it has raised more revenue.
Dubai businesses feel squeeze as economic downturn bites. Uae economic growth momentum at turning point, says imf around 3 per cent growth rate forecast for 202021 on expo, government stimulus and higher oil prices dark clouds over the the springs, dubai. For further details, please see our recent note uae economic update. Provides a public service to check the availability to reserve a business name across the uae.
Barack obama has retired and the us has its 45th or even 46th president. Global economy the global economy has plateaued but shows no signs of falling off a cliff in 2019. Download a free pdf of the report and data sets for each of the charts therein from the imf. Throughout 2018, the trend of a more tepid economic backdrop has remained. Dubai exports, the export promotion agency of the department of economic development in dubai, was created to ensure the success of the exports sector in dubai and the uae, providing constant guidance, advice and practical support to both. Economic fundamentals are strong, the regulatory climate is favorable, and transformation technologies are more readily accessible, powerful, and economical than ever before. Dubai may not be an oil producer, but it exports its services to the rest of the gulf where demand is weakening. Economy profile of united arab emirates doing business 2020 indicators in order of appearance in the document starting a business procedures, time, cost and paidin minimum capital to start a. From 2000 until 2012, the uae gdp growth rate averaged 4.
Figure 1 united arab emirates annual gdp growth rate. The duration of the outbreak and its impact on the global flow of people and trade present considerable downside risks to the outlook. Uae economic growth momentum at turning point, says imf. Imf staff completes 2019 article iv mission to the united arab emirates. This report examines the uae and some of the worlds economic giants such as the united states, the uk, the european union, china, japan and other asian countries which are experienced in terms of readiness in managing risks and global economic shifts in the future. Dubai economic growth at its slowest since 2009 debt. But it also warned main risks to the outlook stem from longstanding debt problems, citing imf data that show that the debt of dubai s governmentrelated entities gres which were at the. The uae will remain politically stable in 202024 despite rising regional tensions centred on iran. United arab recent developments gres and higher fees. Providing information and advice to consumers and retailer sellers about their rights and responsibilities. On an annual basis, in 2019, the conference board global economic outlook 2019 projects the aggregate global growth to slow slightly to 3. Creating and maintaining a sustainable and diversified economy is a component of united in knowledge, a pillar of vision 2021. Pdf diversification and development of the united arab emirates. Economic performance takes a turn for the worse as virus hits trade and tourism.
United arab emirates economic growth the economy is projected to contract this year as both the oil and nonoil sectors shrink amid dissipating global demand. United arab emirates has witnessed a growth of about 4 per cent despite the. Table 2 united arab emirates macro poverty outlook indicators annual percent change unless indicated otherwise 2016 2017 e f f f s 0 8 6 6 0 2 on 6 3 5 0 1 3 on 1 4 0 5 6 8 t 86 0 2. Provides tools for uae foreign trade data enquiry in interactive and.
Naturally, the countries of the middle east and north africa mena are also affected, although each in different ways. Addressing these and other priority issues, as discussed in this report, will be. The positive outlook for asiapacific is linked to an improved outlook for chinas economy. A weak real estate sector is a drag on economic growth and poses financial stability issues. Can the uae avoid the oil curse by economic diversification. Middle east recovery blown off course as coronavirus spreads published 23 march 2020.
The economic outlook for mena amid covid19 and the oil. Heavily indebted poor countries hipc initiative and. Pdf this contribution examines the major features of uaes economy, its factors. The emirate of sharjah, the uae s 3rd largest emirate both in terms of economy and population, has shown an average gdp growth of 6% a year from 2010 to 2015.
Armani hotel, dubai agenda day one tuesday, december 16th 09. Economic indicators for the united arab emirates including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and shortterm predictions for the united arab emirates economy. Imf forecasts faster uae growth driven by expo 2020. However, sharjahs main regional economic partners are oildependent. Real gdp growth rate and population growth rate in dubai %. The uae is forecast to achieve an average real gdp. This report discusses the economy of the uae and focuses on the exports, imports, trade balance, trade partners, budget surpluses, and gdp growth rate for 19902012. This page has economic forecasts for the united arab emirates including a longterm outlook for the next decades, plus mediumterm expectations for the next four quarters and shortterm market predictions for the next release affecting the the united arab emirates economy. Oil outlook 8 we forecast brent oil futures at an average of usd 56b in 2018.
Assuming no major disruptions, a gradual slowdown seems most likely. Oil outlook hinges on june meeting aside from the geopolitical developments, the outlook for oil for the rest of the year hinges on two things. After six years of the continued economic slowdown, the asian giants economy has shown some signs of stability, prompting experts to raise their forecast for chinas economic growth rate from 6% in 2017 to 6. Austerity measures weakened business and consumer confi. Within the uae, a significant gap has opened up between dubai and abu dhabi. The world economic outlook weo is a survey by the imf staff published twice a. Beyond 2017, overall gdp growth is expected to recover to 2. Uae economic challenges to persist in 2018 analysts expect a pickup from 2019 as the effects of higher oil prices and a government stimulus package kick in published. On october 28, in its regional economic outlook, the imf had given a provisional forecast of 1. World economic outlook, october 2019 international monetary fund.
Real estate has long been a key economic driver for the uae and will continue to be in this year, writes ahmed alkhoshaibi, ceo, arada launching in 2019 the business park in aradas aljada development. Qatar is easily the richest country in the world on a per capita basis. The economy of sharjah has a relatively diverse production base and is not directly dependent on oil and gas. Of the seven emirates in the uae, abu dhabi and dubai account for the lions share of the countrys gdp.
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