United Arab Emirates Economic Outlook
October 2, 2018Following a likely solid second quarter for the non-oil sector, the economy appears poised to be gaining steam in the third quarter. This is notably thanks to the increase of OPEC oil production targets in June as reflected by a noticeable increase in oil output in July and August. Furthermore, although the PMI softened somewhat in the same period—indicating waning momentum in the non-oil economy—a swath of recent reforms enacted throughout the Emirates should be starting to bear fruit in Q4 and beyond, further buttressing economic activity. The measures notably focus on making business easier and cheaper to conduct, as well as on attracting investment and skilled labor—for instance by making visas and business licenses easier to obtain. Job creation for now remains one of the weak points of the UAE economy, as seen by the fall in employment logged in the August PMI. However, resilient output growth suggests it could accelerate in coming quarters as backlogs of work continue to accumulate.
United Arab Emirates Economic GrowthHigher investment and public spending are likely to drive growth higher this year and next. Particularly, infrastructure investment related to the country’s preparation to host the 2020 World Expo will support the outlook, buttressing the construction sector. Furthermore, recent business-friendly reforms and a new investment law to be unveiled in Q4—which will authorize complete foreign ownership of firms in select sectors—are poised to boost investor confidence and support higher FDI inflows. Finally, the country should benefit from a robust tourism sector, particularly in Dubai, and rising oil production amid high global demand. Met the why particular panelists expect GDP to increase 2.4% in 2018, before accelerating to 3.0% in 2019, which is down 0.1 percentage points from last month’s forecast.
United Arab Emirates Economy Data
5 years of United Arab Emirates economic forecasts for more than 30 economic indicators.
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United Arab Emirates Facts
|Exchange Rate||3.67||0.0 %||Oct 18|
|Stock Market||0.3||0.75 %||Oct 18|
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United Arab Emirates Economic News
October 3, 2018
The Emirates NBD Purchasing Managers’ Index (PMI) rose slightly to 55.3 in September, up from 55.0 in August.
September 4, 2018
The Emirates NBD Purchasing Managers’ Index (PMI) fell to 55.0 in August, from 55.8 in July.
August 21, 2018
Consumer prices fell 0.05% in July from the previous month, contrasting the 0.37% month-on-month increase observed in June. The July reading was mainly driven by a fall in the price of housing, water, electricity and gas, which accounts for over a third of the Consumer Price Index.
United Arab Emirates: PMI loses ground in July on weaker new business growth and sluggish employment
August 12, 2018
The Emirates NBD Purchasing Managers’ Index (PMI) fell to 55.8 in July from 57.1 in June.
July 30, 2018
Consumer prices increased 0.37% in June from the previous month, contrasting the 0.06% month-on-month fall observed in May.