Obaid Bin Humaid Al Tayer, Minister of State for Financial Affairs, and Chairman of the Federal Tax Authority stated that despite all the current prevailing issues like Coronavirus pandemic’s threat, economic clog down on cards, the UAE’s Gross Domestic Product, (GDP) is estimated to broaden at Dh1.50 trillion in 2020 from Dh1.464 trillion in 2019 and Dh1.442 trillion in 2018.
Thus, the overall growth percentage post year was that of 2.74 percent.
He Al Tayer was addressing a session the previous Tuesday and was giving a proactive answer to a query raised from a member of the Federal National Council, FNC regarding the role and implications of the Value Added Tax, VAT, on the national economy. The five percentage VAT that was introduced in the UAE during January 2018, for a relatively shorter duration to have enough data pool for measuring its deeper economic impact.
He also added that “Although 2019 full economic data is not yet out, and that they just have 2018 data, but they are optimistic that despite all the impending crisis that looms and is indicative of economic turbulence, nation’s GDP will march ahead as GDP is a real index for the macroeconomic performance of the state.
He further added that “They should bear in mind the global factors when the UAE implemented the VAT, such as the decline in oil prices across the world, slow growth of the global economy, increasing trade protectionism and economic sanctions slapped on some countries in the region; all these factors have a close connection with the GDP.”
The previous year, the inflation rate was just 1.5 percent as compared to the year 2018 inflation which was at 3.69 percent and the nation’s GDP was Dh1.44 trillion during 2018 wherein a three-year previous scenario states that the country’s GDP was Dh1.41 trillion with the inflation rate at 1.97 percent. Al Tayer said the UAE is currently witnessing an increase in investment opportunities, which was reflected in the increase in the number of companies registered under the tax system, which is 312,000 companies.