United Arab Emirates Economic Outlook
November 27, 2018The economy likely accelerated in the third quarter, chiefly thanks to a combination of higher oil prices and rising output, coupled with a steady expansion in the non-oil economy. Though a recent plunge in prices might weigh on oil revenues in Q4, non-oil activity should remain robust as reflected by a broadly stable PMI and record-high business confidence in October. Overall, the country’s economic prospects appear bright over the next quarters, mainly buttressed by a flurry of business-friendly reforms which are poised to further entice foreign capital. On 30 October, the government enacted its long-awaited landmark investment reform, authorizing complete foreign ownership of firms in select sectors—though the full list of said sectors will only be finalized in Q1 2019—and introducing an investor dispute resolution mechanism.
United Arab Emirates Economic GrowthMultiple tailwinds are likely to propel growth next year. Notably, the recent investment reform could buttress FDI inflows by up to 20% annually, according to the Minister of Economy. Furthermore, economic activity should be buoyed by the largest-ever federal budget outlined for 2019, coupled with the ongoing infrastructure push related to the 2020 World Expo in Dubai—which will power the construction and tourism sectors. Finally, solid oil revenues should continue to support growth and help the government maintain a fiscal surplus. That said, the possible renewal of production cuts at the next OPEC meeting, on 6 December, could put a lid on oil-sector activity. Met the why particular panelists expect GDP to increase 3.2% in 2019, which is unchanged from last month’s forecast, and 3.3% in 2020.
United Arab Emirates Economy Data
5 years of United Arab Emirates economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
United Arab Emirates Facts
|Exchange Rate||3.67||0.0 %||Dec 14|
|Stock Market||0.3||0.75 %||Dec 14|
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
United Arab Emirates Economic News
November 23, 2018
Consumer prices fell 0.61% in September from the previous month, contrasting August’s 0.15% rise.
November 5, 2018
The Emirates NBD Purchasing Managers’ Index (PMI) edged down to 55.0 in October, from 55.3 in September.
October 26, 2018
Consumer prices rose 0.15% in August from the previous month, contrasting July’s 0.05% decline.
October 3, 2018
The Emirates NBD Purchasing Managers’ Index (PMI) rose slightly to 55.3 in September, up from 55.0 in August.
September 30, 2018
On 30 September, the UAE cabinet approved an AED 180 billion (USD 49 billion) three-year federal budget plan for the period 2019-21.