As predicted by the World Bank, on the back of continued infrastructure spending and economic stimulus and the brink of projected 2.6 percent expansion this year, UAE is expected to be amongst fastest growing Arabian world economy.
Arab world’s second largest economy after Saudi Arabia, the Gross Domestic product of UAE, is projected to accelerate to 3 percent in 2020 as the region “Push the infrastructure investments ahead of Dubai Expo 2020”, as quoted by Washington based lender in the bi-annual Gulf Economic Monitor report.
UAE and GCC peers are busy in diversification of its economy with a vision of: –
• Decreasing its dependence on the hydrocarbons for revenues.
• Withstand downturns in energy markets such as collapse of oil prices in 2014, which has now stabilised and rebounded to about $75 per barrel.
• Launching several initiatives at both federal and Emirates level like easing visa restrictions, reducing corporate fees and enhancing the business-friendly environment attracting millions of expatriates.
Abu Dhabi had announced a whopping aid of Dh 50 billion three-year economic stimulus package for kick-starting the economy. In the same manner, Abu Dhabi has rolled out a mega record budget ahead of the 2020 Expo.
There is more positive news as UAE gears up for fastening its already stable and growing output to 3.2 percent within 2021 supported with government’s economic stimulus plans, hosting Expo 2020, and improved growth prospects in trading partners.
The World Bank has a conservative growth forecast comparatively to the International Monetary Fund and the Central Bank of the UAE, wherein it projects UAE’s GDP growth to rise to 3.7 percent during 2019-20, whilst the expected GDP growth of the Central Bank of the UAE stands at 3.5 percent, a 2.8 percent raise than the previous year.
It also estimates that GCC economic output to get accelerated at 2.1 percent in 2019, then 2 percent in 2018, before being breaching a 3.2 percent mark in 2020.
Opec’s top oil exporter, Saudi Arabia’s GDP is projected to grow at 1.7 percent in 2019 due to the higher government defrayment offsets that impact production cuts enforced within the half of 2019 by international organisation and non-Opec oil-producing nations.
“It ought to then recover to over three per cent in 2020 as boring cuts are reversed, and as massive infrastructure gathers pace to generate positive pullovers to non-public sector growth,” the lender aforementioned.
Bahrain, the GCC’s smallest Gulf economy, can expertise an increase in growth to two.2 per cent next year from two per cent in 2019.
“Growth can resume within the returning years as potency gains from reforms occur,” the bank aforementioned.
Economies in Kuwait and Oman are projected to expand by one.6 per cent and one.2 per cent severally this year.
In Oman, the planet Bank expects a “one-off spike in growth to six per cent in 2020 because the government plans to considerably increase investment within the Khazzan gasfield”.
The Khazzan field is that the largest tight gas development within the country, which is able to offer a 3rd of Oman’s gas desires once the completion of the first part of development.
“The potential boost from the diversification investment defrayal would continue supporting growth in 2021 and also the medium term,” the bank aforementioned.
Despite the steady progress, major reforms to draw in investors and boost fight, the Gulf States have to continue on the trail of business enterprise consolidation, economic diversification and increasing personal sector-led job creation, particularly for ladies and kids, the planet Bank aforementioned.
“Working closely with the GCC, we’ve seen robust political can from some countries to realize their country vision plans with real, tangible outcomes on the bottom,” aforementioned Issam Abousleiman, United Nations agency regional director for the GCC. “But economic transformation could be a long-run endeavour, requiring steadfast, foreseeable implementation. Whereas the road ahead is difficult, it’s attainable and that we are committed to taking this journey along.”