Mubasher: The UAE economy in the coming years is expected to witness prosperity as it will be enhanced by several factors, according to a new report from Dubai Chamber of Commerce and Industry.
Dubai Chamber noted that the factors are backed by the emirate’s solid and diversified economy, which has softened the effects of both lower oil prices and weakened global demand for trade.
In addition to the country’s growing confidence, the economic outlook has been sustained by an upswing in the UAE 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,” Dubai Chamber’s report added.
Dubai Chamber’s report projects the UAE economy to return to long-term growth in 2018 and beyond, demonstrating that despite the decreasing oil prices witnessed since mid-2014, in conjunction with weaker global demand for trade, the UAE has successfully strengthened its global budget with relative spending reductions at the government level from 2015 onwards. This has been achieved most notably by revoking subsidies and introducing value added tax (VAT) starting January 2018 to diversify the government’s sources of income.
The UAE economy has successfully bucked the downward trend affecting global markets in recent years and maintained its strong points, which have helped maintain the same rapid growth that was witnessed in the lead-up to the plummet in oil prices.
“These strong points, which include a comprehensive, robust and stable economic environment; a business-friendly atmosphere; a solid, world-class infrastructure and a prime strategic location that has helped establish the country as an international centre for business, financial and maritime services,” Dubai Chamber’s report added.
