Propelled by fast-growing oil and non-oil sectors, the UAE economy, which is set to surpass the Dh1.4 trillion mark in 2012, is poised to pick up pace with 3.7 per cent growth in 2013.
The impressive resilience of the diversified economy is all the more reassuring with Dubai recording a steady improvement from a negative to two per cent growth in 2011 and a projected 3.4 per cent growth in 2012 and even a higher growth rate in 2013, according to the International Monetary Fund, or IMF.
On a consistent growth track for more than four decades since its foundation, the UAE, with its increased focus on diversification, has not only emerged as the second largest Arab economy, but also the most competitive, diverse and investor-friendly nation in the region thanks to prudent policies based on openness and diversification of sources of income.
The economic success story of the country has few parallels and the UAE is now ranked among the secure and stable economies offering one of the most sought-after investment destinations on the planet.
“The UAE as a whole is responding comfortably to improved non-oil and oil sector growth. However, the medium term challenge for the county is to further build on the good performance to strengthen its resilience, including in relation to GREs,” said Masood Ahmed, director of the IMF’s Middle East and Central Asia Department.
The real gross domestic product, or GDP, of the UAE is predicted to grow by 3.4 per cent in 2012, accelerating by 3.7 per cent in 2013 and sustaining a growth rate of 3.4 per cent in 2014, the bank said.
The current account balance in 2012 will be 10.2 per cent of the GDP, which will slide to 8.5 per cent in 2013, Standard Chartered said in a recent report.
According to the UAE Minister of Economy Sultan bin Saeed Al Mansouri, the economic reality in the world today requires the UAE to play a larger role in shaping a new global economic order, as well as in powering the social development debate.
HSBC has raised the pace of expansion of the UAE economy closer to the regional average, and said the country has shown resilience over the first nine months despite being more exposed to the European slowdown than any other Gulf country.
The bank has raised the UAE gross domestic product, or GDP, growth forecast to 3.7 per cent in 2012 and to four per cent in 2013.
Simon Williams, chief economist for Middle East & North Africa at HSBC, observed that the UAE continued to rely heavily on external demand without employing monetary or fiscal stimulus that is driving growth elsewhere in the GCC.
In January this year, the Saudi Commission for Tourism and National Heritage announced that regulations were being finalized for the much-anticipated visas that will, for the first time, allow foreig
Complementary, not competitive — this ethos must be etched into the global energy playbook. Sleeves must be pulled up to ensure that the BP Outlook’s forecast of a 49 per cent increase in energy cons
Saudi Arabia's economy is entering a post-oil era in which the kingdom's mega-cities, a number of which are under construction, will provide the country's future growth, Riyadh officials told CNBC on
Please wait...
