United Arab Emirates Economic Outlook
June 5, 2018The economy gained steam in the first quarter, largely thanks to higher oil price that buoyed the hydrocarbon sector, despite constrained output from the OPEC agreement. This welcome boost more than offset a slight slowdown in the non-oil economy, which had to adjust to the implementation of VAT in January. Looking at Q2, the VAT-induced slowdown is likely to subside, with PMI data showing an improvement in April, while oil prices dynamics still look positive following the U.S. exit from the Iran nuclear deal. Furthermore, on 20 May, the government approved a new 11-year visa to attract investors and skilled professionals, as part of its comprehensive strategy to modernize and diversify the economy away from oil. This should reinvigorate the residential housing market, which has been tumbling in past years.
United Arab Emirates Economic GrowthInvestment should be the main driving force in the non-oil economy this year. A large infrastructure push from the government, particularly in Dubai in the run-up to the Expo 2020, should carry private investment momentum. In addition, a flurry of new measures including 11-year visas and a reform—to be introduced in Q4—authorizing 110% foreign ownership in some sectors are expected to boost FDI inflows further. Meanwhile, higher tourist inflows will likely buttress private consumption growth. An escalation of regional tensions could, however, put a lid on this positive momentum. Met the why particular panelists expect GDP to increase 2.7% in 2018, which is unchanged from last month’s forecast, and 3.2% in 2019.
United Arab Emirates Economy Data
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United Arab Emirates Facts
|Exchange Rate||3.67||0.0 %||Jun 14|
|Stock Market||0.4||0.75 %||Jun 13|
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United Arab Emirates Economic News
June 5, 2018
The Emirates NBD Purchasing Managers’ Index (PMI) increased to 56.5 in May from 55.1 in April, on the back of higher domestic and regional demand which supported business activity.
May 22, 2018
Consumer prices fell 0.23% in April from the previous month, a softer decrease than the 0.65% month-on-month fall observed in March.
May 3, 2018
The Emirates NBD Purchasing Managers’ Index (PMI) increased to 55.1 in April from 54.8 in March on the back of a pick-up in new orders growth, following three consecutive months of decline in the index following the implementation of VAT in January.
April 23, 2018
Consumer prices fell 0.65% in March from the prior month, a sharper decline from February’s 0.15% month-on-month fall.
April 3, 2018
The Emirates NDB Purchasing Managers’ Index (PMI) fell marginally from 55.1 in February to 54.8 in March.