Thursday, 27 June 2013

IMF Tells Investors UAE Will Continue Strong Economic Growth

According to the International Monetary Fund (IMF), the United Arab Emirates (UAE) economy will experience a growth of 3.6 per cent in the current year on the back of higher oil prices and further supported by investment, trade and rising tourist arrivals. The IMF fully assessed the financial and economic performance of the second biggest Arab economy, and has highlighted the positive indicators of the UAE’s overall economy. The fund projected a gross domestic product growth of 3.6 per cent in 2013, which is a result of economic activities supported by investments, trade, tourism and logistics support. This growth is predicted to increase to 3.7 per cent the following year in 2014 and 3.8 per cent in 2015.

The report, conducted by the IMF, additionally indicated the decrease of inflation in the UAE to 0.7 per cent compared to the country's 0.9 per cent of the gross domestic product (GDP) in 2011. Nevertheless, the IMF is estimating a rise in inflation to 2 per cent in 2013, followed by an increase of 2.4 per cent in 2014 and 2.5 per cent in 2015. With regards to the country's exports, the UAE are expected to see an increase to approximately $367 billion in 2013 and experience continued growth to $393 billion by 2014, followed by $420 billion in 2015. Keeping in line with the expected medium-term recovery in the non-oil industry, it is predicted that the sector will grow by 4.2 per cent in 2015, where the IMF projects a rise in exports to $109 billion in 2013, $120 billion in 2014 and $134 billion in 2015; compared to $96 billion in 2012 and nearly $71 billion in 2011. Moreover, the IMF expects domestic investing, including both business and investment opportunities, to rise to 15.6 per cent (of GDP) in 2013.

The UAE has been continuing to showcase strong economic patterns through its macroeconomic policy and consistently attract interest from investors that are eager to pour capital into the Arab country. In addition, the continuous positive steps taken by the country's federal government to further strengthen the UAE’s economy through with the policies which support the financial sector’s stability, led to the economy’s recovery and strengthened the state’s ability to overcome the barriers of the global financial crisis. Furthermore, as UAE's biggest and most contributing economy to the nation's growth, the country is anxiously awaiting the World Expo 2020 announcement in November 2013, and hoping Dubai will be chosen to host the international event. As the UAE economy continues to rise, Dubai seems as if it would be the perfect location to host this global event.

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