Apr 07, 2020 united arab emirates economic growth economic growth is expected to decelerate this year on a weaker oil sector, while the nonoil sector is also expected to contract. The united arab emirates uae gross domestic product gdp grew by 4. United arab emirates economic growth economic growth is expected to decelerate this year on a weaker oil sector, while the nonoil sector is also expected to contract. Diversification and development of the uaes economy munich. The uaes growth rate was the fastest since 2007 and also ahead of a forecast of 4. But the real gdp growth rate is expected to fall from its current level of growth. The paper investigates determinants of economic growth in gcc countries using vecm approach. United arab emirates gross domestic product growth 2024. Uae economic growth momentum at turning point, says imf around 3 per cent growth rate forecast for 202021 on expo, government stimulus and higher oil prices dark clouds over the the springs, dubai. Uae forecast to enter a faster economic growth trajectory. The present report examines the healthiness of the uae economy, focusing throughout on selected macroeconomic indicators. The uaes economy, like others oil exporting countries, faced considerable oil price volatility in the 1990s7. Project activity in the uae is forecast to recover in 2017 after a difficult 2016 on the back of a strong recovery in economic growth, according to a new report from middle east business intelligence service meed. The uae economy has proven its resilience and ability to sustain growth despite such pressures and economic difficulties.
Ey growth drivers, designed to provide concise, thoughtprovoking and highly relevant input, in what is a very dynamic region. This tradition of welcoming business and trade goes back to early gulf history, when ships sailed to india and along the coast of east africa as far south as mozambique. Pdf determinants of economic growth in gcc economies. Growth is forecast to reach 3% by 2021 supported by the governments economic stimulus plans. Keep supporting great journalism by turning off your ad blocker. The uae claims a territorial sea of 12 nautical miles, a contiguous zone of 24 nautical miles, an exclusive economic zone of 200 nautical miles, and a continental shelf of 200 nautical miles or to the edge of the continental margin. Dubai reuters the united arab emirates expects its economy to grow 2. The study determines the influence of indicators of economic growth in the united arab emirates to assess the sustainability of the countrys economic performance. The uaes consolidated government spending for 2019 is significantly higher than last year and is expected to support economic growth of the country in 2019 despite a projected decline in. Growth is expected to recover over the medium term. Uaes higher spending to shore up economic growth in 2019. Uae economic outlook bright 2018 research konnection.
In a report cited by the countrys state media agency wam, the imfs latest economic outlook figures show that the uaes real gdp will outdo the 2. The target population for this study consisted of the quarterly reports on the state of the kenyan economy in relation to productivity. However, official demandside data, including data related to consumption, investment and net trade, suggest that growth softened in 2018. International monetary fund says gcc economic growth expected to pick up in 2018 and 2019. Real gdp annual growth rate a comparative analysis with world economies from 1980. Real gdp growth rate and population growth rate in dubai %. The tanzania national bureau of statistics reports that real gross domestic product gdp growth was 7. In particular, in 2012 the uae economy has witnessed a growth of about 4 per cent. They also reflect on the countrys stature and position in a variety of sectors. The uae s economy, like others oil exporting countries, faced considerable oil price volatility in the 1990s7. United arab emirates global economic prospects examines trends for the world economy and how they affect developing countries.
United arab emirates gdp growth rate 20002019 data. Baseline growth assumptions reveal that abu dhabi could achieve tangible levels of economic diversification by that time. The short term outlook of the uae economy is expected to be fairly favorable, because of rapid development in the fields of construction, manufacturing and tourism. Growth is expected to strengthen over the medium term. United arab emirates gdp growth rate 20002019 data 2020. The duration of the outbreak and its impact on global travel and trade present considerable downside risk to the outlook. Risks around this forecast are broadly balanced in the near term, but are skewed to the downside over the medium term. It is expected that gdp growth rate will be an average of 7% during the span of 20082012. Cio office investment outlook 2018 best bank in dubai and uae. Uae gdp growth forecast to rise 4%5% from 2017 2020, driving projects rebound uae. During the last decade the uae economy has shown steady growth and the value of total gdp has more than doubled. Read more about the sustainable development goal decent work and economic growth. It also provides valuable insights on the uaes current and predicted market and economic conditions based on its preparedness and efforts to create legislations towards a futureoriented and resilient economic system and forecasts the growth patterns from oil to nonoil markets, domestic trade and. The last article iv executive board consultation was on january, 2020.
Gdp growth rate in the united arab emirates averaged 4. The report also forecast that the gcc nations economy would post a 2. Uae economic diversification efforts continue to thrive. However, in that decade the uae experienced a real gdp growth which averages about 7 per cent. In the difc, the esr will be administered by the registrar of companies for all difc firms, including firms that are. United arab emirates economic forecasts 20202022 outlook. Much of the sediment clouding the water in this image of the persian gulf is from the shatt al arab river, which enters the gulf in the north along the iraniraq border. The united arab emirates economic freedom score is 76.
The uae, the emirate of abu dhabi and the emirate of dubai have each articulated complementary, ambitious, investmentled, citizensfocused economic plans and strategic visions. Economic diversification into gas, tourism, financial services and hightech industries offers some protection against volatile oil prices. From 2000 until 2012, the uae gdp growth rate averaged 4. The uaes economic growth is set to accelerate next year as nonoil revenue expands on the back of government measures introduced in 2018 and higher spending, economists said. Within last three decades both financial sector and uae economy as a whole experienced a remarkable growth. Dubai uae economy expects to perform well in 2018 amid gains in oil prices, countrys diversification drive and implementation of vat tax. At the country level hydrocarbons account for 30% of gdp. United arab emirates a new growth model is needed iif. Economic substance regulations the uae has enacted economic substance legislation that applies in all uae jurisdictions, including financial free zones such as the difc. Gerard gallagher managing partner ey advisory services. Highclass tourism, with some of the worlds most luxurious hotels, and international finance continue to be developed in the uae. Dubai is the secondlargest of the seven emirates that comprise the uae in terms of economic size, and the main driver of economic diversity in the country.
The countrys gross domestic product gdp is expected to cross 400 billion dollars in 2018 with a cagr of near around 4 per cent rising from the moderate growth of 1. Underscoring the uaes emergence as a hub for business, the global entrepreneurship and development institute recently named the uae the top country for entrepreneurs in the mena region. The main objectives are to achieve high, diversified, innovative, knowledgebased and sustainable growth, and high living standards and happiness. After outpacing the rest of the gcc in economic growth in 2017, the uae is set to almost double its expansion rate in 2018, the latest report by a panel of economists reveals. The report includes countryspecific threeyear forecasts for major macroeconomic indicators, including commodity and financial markets. Figure 1 united arab emirates annual gdp growth rate. These diversification efforts are driving economic growth, with the.
The uaes economy, like others oil exporting countries, faced considerable oil price volatility. It also provides valuable insights on the uae s current and predicted market and economic conditions based on its preparedness and efforts to create legislations towards a futureoriented and resilient economic system and forecasts the growth patterns from oil to nonoil markets, domestic trade and. Pdf diversification and development of the united arab emirates. The country has experienced significant economic growth. Uae and some of the worlds economic giants such as the united states, the uk. Doing business in the uae opportunities oil prices are expected to stay high by historical standards over the near future. Government spending and nonoil economic growth in the uae in. Much of this growth was created through diversification in nonoil sectors. In the decade since the global financial crisis, countries in the middle. Useful links from government and news reports resources.
In the difc, the esr will be administered by the registrar of companies for all difc firms, including firms that are regulated by the dfsa. The uaes economic growth is projected to take a faster route in 2020 driven by rising business optimism, fiscal stimulus and higher government and private sector spending in projects. Average gdp growth over 2000 to 2006 in the uae was about 8. To discuss the implications of global and regional economic trends and prospects for the uae economy. Figure 1 united arab emirates annual gdp growth rate percent per annum figure 2 united arab emirates general government operations in percent of gdp sources. The uae will remain politically stable in 202024 despite rising regional tensions centred on iran. The present paper studies empirically the relationship between government spending and nonoil economic growth in the uae for the last four decades by using the vector autoregression var approach. For more information, you could also read the uae annual book 2016 pdf. A weak real estate sector is a drag on economic growth and poses financial. The impacts of the positive transformation of the uaes global competitiveness position apply to more than economic scenarios.
We hope that our efforts to help businesses and governments understand each others concerns take us a further step in helping to build a better working world. Its uae economic outlook october 2017 report said hydrocarbon gdp growth is estimated to contract to 2. The uae is able to compete with economies that have been leaders in the competitiveness race for. Thanks to the countrys visionary leadership, what the nation has accomplished in the last four decades is truly extraordinary. Nov 26, 2019 the statistic shows the united arab emirates uae gross domestic product growth from 2014 to 2017, with projections up until 2024.
Figure 2 united arab emirates government operations as share of gdp sources. Uae economy will see robust growth in year ahead the. The uae continues to be a strategic hub, with businessfriendly free zones and a quickly growing economy. Dubais economic growth will accelerate in 2019 and 2020, with tourism, logistics, transport, wholesale and retail sectors replacing the real estate as main growth driver next year, official data. About the uae the official portal of the uae government. In particular, in 2012 the economy of the united arab emirates has witnessed a growth of about 4 per cent despite the difficulties posed by the eurozone and the global outlook negative. The river drains the combined waters of the euphrates and tigris rivers of iraq, and the karun river of iran. The emirate of dubai, for instance, serves as a commercial and financial hub for the region and leads the country in economic diversification, housing hundreds of multinational corporations in a forest of sleek skyscrapers. Pdf within last three decades both financial sector and uae economy as. Dubais economic growth will accelerate in 2019 and 2020. Economy profile of united arab emirates doing business 2020 indicators in order of appearance in the document starting a business procedures, time, cost and paidin minimum capital to start a. We have employed bayer and hanck 20 combined noncointegration to test the long run relationship. It has maintained its position as the second largest economy in the arab world and one of the most important regional destinations for trade, investment and economic activities. United arab emirates since the midseventies have led to high levels of economic growth and, hence, to an increase in income levels contributing thereby to.
Its tourism, logistics, manufacturing and services sectors provide opportunities for growth beyond oil and gas, the industry upon which many economies in the region are dependent. Miller, 1998 to the role of finance in economic growth has been. The more positive global growth environment should support somewhat stronger oil demand. Imf expects gcc economic growth to pick up the national. A possible transfer of power in abu dhabi from the current ruler, who is in poor health, to the crown prince will go smoothly. December 2, 1971, six of the seven sheikhdoms formed the united arab emirates uae. In 2019 however, the pace of recovery will be muted by opec oil production cuts in the first half of 2019. Uae economic growth momentum at turning point, says imf.
According to the economic report 2018 released by the uaes ministry of economy, the uae attracted about usd 10. The results report that in a 10 year horizon, fdi accounts 15. Real gdp growth in the uae is estimated to further moderate to 1. The studys objective was to determine the effect of value added tax on economic growth in kenya. United arab recent developments emirates monetary policy is. As low oil prices have persisted, the economy has slowed further, with growth projected at 2. This paper examines the association between financial progress and economic growth in the united arab emirates over the period 1975q12012q4. More than 50 million people joined the ranks of the middle class, an astonishing 50% increase over the 10year period. The uaes economic growth is expected to increase by 3. The uae was ranked first among the countries most attractive to foreign direct investment in the middle. The seventh sheikhdom, ras al khaymah, joined the uae in 1972. Middle east united arab emirates the world factbook.
Link of uae and the gcc ports with most of the worlds ports. Economic substance regulations dubai international. The economy of the united arab emirates or uae is the second largest in the middle east. The statistic shows the united arab emirates uae gross domestic product growth from 2014 to 2017, with projections up until 2024. The research design adopted in this study was causal study. The uae has one of the most open economies in the world. Does financial development induce economic growth in uae. In 2015, 70 percent of the uaes gdp came from nonoil sectors, including media, telecom, tourism, manufacturing and commercial aviation.
Dec 31, 2011 current economic situation with the oil and gas sector accounting for over 31% of the countrys gdp, higher oil and gas prices as well as the increasing oil production capacity will continue to support the uaes economic growth despite the uncertain global economic climate. The uae portal for the sustainable development goals. Uae economic outlook 2015 towards a knowledge based economy. Uae economic growth set to double news khaleej times. International monetary fund says growth reflects economic diversification efforts made by the country. Growth, diversification and macroeconomic policies first, the international monetary fund imf has warned of inflationary pressures. Current strengths and weaknesses of the uae economy. Listed below are items related to united arab emirates. The imf ascribed uaes potentially strong economic growth in world economic outlook report to the increased contribution of nonpetroleum sectors, which registered a growth average of more than 6% in 2014 and 2015. Our analysis revealed the existence of cointegration between financial development and economic growth. Uae economy of a potential agreement to renegotiate the. This section provides essential information about the uaes economy, political and government system, strategies, plans and initiatives. This page has economic forecasts for the united arab emirates including a longterm outlook for the next decades, plus mediumterm expectations for the next four quarters and shortterm market predictions for the next release affecting the the united arab emirates economy. It has maintained its position as the second largest economy in the arab world and one of the most important regional destinations for trade, investment and.