We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 27 Jan 2010 12:39 AM

Font Size

- Aa +

UAE economy growth to drop to 0-1% in 2010 - IMF

Overall GDP growth expected to be flat with some positive growth in Abu Dhabi.

UAE economy growth to drop to 0-1% in 2010 - IMF
ZERO GROWTH:The IMF expects the impact of Dubais debt restructuring to be a drag on the performance of the UAEs economy, with zero to 1% growth likely. (Getty Images)

The UAE's economy is likely to see growth of zero to one percent this year as the impact of Dubai's debt restructuring continues to be a drag on its performance, an IMF official said on Tuesday.

Speaking to reporters, Masood Ahmed, director for Middle East and Asia, International Monetary Fund, said: "In 2010, we expect that overall GDP growth will be about flat. Within that, we expect some continued contraction in Dubai and positive growth in Abu Dhabi."

He said: "Overall GDP last year including oil was minus 0.7 (percent)."

The IMF's growth forecast was bleaker than that in a Reuters poll on Tuesday.

Analysts predicted UAE growth would be 2.5 percent this year - the slowest pace in the Gulf - down from a November forecast of 2.9 percent.

But the world's third largest oil exporter would still improve from an estimated contraction of 1.4 percent in 2009.

Masood met with officials from the UAE central bank and finance department and said he expected a review to be released in coming weeks.

Dubai rocked global markets on Nov 25 with plans to delay repayment on $26 billion in debt linked to state owned conglomerate Dubai World and its main property units.

The flagship company is working on a restructuring plan.

While talking to reporters, he said: "The effect of the restructuring continue to be a drag on the growth of Dubai and the UAE in 2010."

The UAE central bank and Abu Dhabi lent an overall $20 billion to Dubai last year to help its neighbour restructure debts. (Reuters)

Arabian Business: why we're going behind a paywall

For all the latest market 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.