The Ministry of Finance (MoF) has reviewed the International Monetary Fund’s (IMF) Article IV Mission to the UAE report, which evaluates the UAE’s economic performance in 2016.
The IMF executive board discussed the report during its last meeting, praising the country for its UAE Vision 2021, government strategies and ability to achieve economic growth. The report highlighted the strength and resilience of the UAE’s economy amidst low oil prices and global economic changes.
The IMF Mission visited MoF in June 2016, playing a key role in identifying MoF’s achievements in the implementation of prudent financial policies and solid economic methodology to drive sustainable economic growth in the UAE.
During its last meeting with the IMF’s Article IV Mission, the MoF highlighted the important role played by its diverse economic and financial policies in enhancing the local economy’s ability to withstand economic pressures, maintain economic stability as well as facilitate sustainable economic growth in the country. The ministry also discussed the implementation of important reforms, including the removal of fuel subsidies and laying foundations for the introduction of VAT.
The UAE’s economy is projected to grow by 2.3 per cent in 2016, with inflation set to decrease by 3.3 per cent. The country’s currency will remain stable thanks to the financial decisions, policies and reforms implemented by government entities with regards to reducing the UAE’s dependency on oil revenues, transferring the capital to government-related entities and raising water and electricity charges.
The report showed the growth of non-oil gross domestic product (GDP) at 3.7 per cent in 2015; and moderate growth is expected in 2016 amidst the drop in oil prices. It also highlighted that the Expo-related investments allocated towards airport extensions, rail, transportation by land and sea, tourism facilities and real estate will promote economic growth in 2017.