Dubai Chamber predicts UAE growth of 3.8% till 2023
Posted on: 15th January 2019 in
Expats in Dubai will be relieved to hear that the UAE economy is predicted to grow at a healthy average rate of 3.8% over the next five years.
That’s according to the Dubai Chamber of Commerce and Industry in January 2019.
2017 saw the UAE’s overall economy grow by only 0.8% after OPEC pressure on oil output and a slide in crude prices. But – thanks to a slew of government initiatives announced in April – the immediate future is expected to be brighter for both halves of the economy: oil, and non-oil.
The National summarises that, “the non-oil economy of the UAE is projected to grow by an average of 4.1 per cent annually between 2019-23, compared to the 2.8 per cent recorded in the 2014-18 period.”
In the non-oil economy, transport and communications are set for 7.9% average growth till 2023, construction 4.2% and real estate and business 3.8%.
The UAE Government: 2018 measures
- In April, Dubai announced a range of measures to attract investment as well as support business across many sectors, including tourism and financial services.
- In 2018, Abu Dhabi announced a $50bn package to support growth in the non-oil sector.
- In June, Dubai and Abu Dhabi said that companies would be exempt from administrative fines for the rest of the year.
- In October, A foreign direct investment law was approved in 2018. The first half of 2018 saw a rise in FDI of 26% in Dubai, with 248 projects recorded. When figures for FDI in 2018 are fully compiled, it is expected that a total for the year of $11.5bn will have been reached.
Globally, the Dubai Chamber expects a more modest GDP of 3.6%. “Emerging markets are expected to top the table for growth until 2023, with real GDP growth projections of 6.1% (Asia), 4.1% (SSA), and 4.1% (CIS).
Also noted by the Dubai Chamber was the UAE’s export split for the first nine months of 2018 – with the Middle East and North Africa accounting for 41% of Dubai’s exports, emerging Asia 26% and Sub-Sahara Africa 18%. CIS accounts for 1% of exports, and Latin America 0.8%.
“Chemicals and allied products was the top-performing product category for Dubai’s exports to Asia, which includes perfumes and cosmetics, and fluorides of aluminium. Within Sub-Sahara Africa and Latin America, wood pulp and paperboard was the top category for Dubai exports, while vegetable oils dominated the emirate’s exports to the CIS region.” (dubaichamber.com
Need professional financial advice?
We have 18 offices across the globe and we manage over $2billion for our 20,000+ clients