ABU DHABI, (UrduPoint / Pakistan Point News / WAM – 08th Nov, 2019) The UAE over the past few weeks has received numerous reports that its economy is on the mend. The latest positive news came on Thursday, when the International Monetary Fund revised its non-oil growth forecast for the UAE in 2020 to 3 percent. That is a significant increase from the relatively modest grow (about 1 percent) in 2019, “The IMF team concluded that the economy is on a recovery path and likely to pick up more momentum next year, helped by Expo 2020 Dubai and existing fiscal stimulus. Overall GDP growth is expected to register 2.5 per cent in 2020,” said The Gulf News in an editorial.
The paper cited other reports that have mirrored the IMF’s analysis. “In an HSBC survey of over 9,100 companies in 35 countries and territories, 83 per cent of the UAE’s businesses anticipate sales growth over the next 12 months, with at least 35 percent looking to grow by 15 percent or more. The bank said the UAE’s significant diversification efforts has meant that the country is increasingly viewed as an innovative hub for trade, benefiting both domestic and international businesses.
This is good news for everyone in the UAE, who have worked to maintain the economy over the past few years, as volatile oil price, trade wars and geopolitical tensions have taken their toll on both the Gulf and the global economy as a whole, it added.
The outlook has been helped by the numerous initiatives of the UAE government, including the issuance of new visas, the freezing of governmental fees for three years, and the setting up of committees to address many economic challenges, including the oversupply in the property market.
However, the newspaper said, many of the root causes affecting the global economy are still there. “The US and China are beginning to show they are serious working towards removing trade barriers, but a global oil glut and political tensions in the region are still having a negative impact on some parts of the economy.
“The government cannot yet cease looking for new ways to boost the economy or working towards finding new ways to solve the underlying issues, but the UAE’s has demonstrated that its economy continues to be resilient.”