Dubai Chamber of Commerce and Industry predicts prosperous years ahead for the UAE economy in new report
A new report from Dubai Chamber of Commerce and Industry has predicted prosperous years ahead for the UAE economy.
The report cites several factors to support these projections, chief among them being the emirate’s solid and diversified economy, which has softened the effects of both lower oil prices and weakened global demand for trade.
The report said that in addition to increased confidence, the UAE’s economic outlook is buoyed by an upswing in government spending on infrastructure projects as part of the preparations for Expo 2020 Dubai.
The net result is expected to encourage the banking sector to increase credit activity in non-oil-related business, growing the local business community’s competitiveness and attractiveness to foreign investors, it noted.
Dubai Chamber’s report predicted that the UAE economy would return to long-term growth in 2018 and beyond, adding that the UAE has successfully strengthened its global budget with relative spending cuts at the government level from 2015 onwards.
This has been achieved most notably by revoking subsidies and introducing value added tax (VAT) as of January 2018 to diversify the government’s sources of income.
The report also highlighted that the country had relatively low external-debt-to-GDP ratio with average of 60 percent over the period 2014-2016, yet it is expected to return to its average of 58% by 2018.
In addition, both UAE fiscal and the current account balances are improving significantly over the same period and are expected to improve further in 2018 and beyond, according to the report.
According to the World Investment Report 2018, foreign direct investment (FDI) inflows to the UAE for 2017 increased to $10.4 billion, registering an annual growth of approximately 7.8 percent.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.