The outlook for the UAE economy is brighter than for the rest of the GCC, according to an IMF report that estimates that the six-nation bloc's GDP is expected to increase by 2.6 per cent in 2019, overcoming a dip of 0.2 per cent in 2017. Economic growth is forecast to reach 3.2 percent by 2020 through the unwinding of the OPEC+ agreement and the government’s economic stimulus plans as well as impetus from hosting Expo 2020. Inflation is projected to rise to 4.2 percent in 2018, before moderating to 2.5 percent by 2020 as the impact of the VAT dissipates.
The game-changing UAE investment law, which is expected to change nation's business landscape by attracting increased foreign direct investments, has come into effect in 2018, which aims to promote and develop the country's investment environment, and attract foreign direct investment in line with national development policies by letting foreign shareholders to own up to 100 per cent of companies in certain designated sectors.
Forecast by The Economist including economy, risk, business and industry says that the UAE will remain politically stable domestically in 2019-23 despite regional tensions. A possible transfer of power in Abu Dhabi from the current ruler, who is in poor health, to the crown prince will pass smoothly. Real GDP growth will pick-up during 2019-23 bolstered by higher oil output. Economic diversification efforts and improving the business environment, mainly in Dubai, will be the major policy priorities. Government revenue will, however, remain dependent on hydrocarbon sector.
United Arab Emirates
Country Facts
Federation of Euro-Asian Stock Exchanges
Capital Market Information
Economic Development and Outlook
Key Highlights of the year 2017 2018
34