The International Monetary Fund expects the United Arab Emirates’ economic growth to nearly triple next year as the country’s capital Abu Dhabi, benefits from an expected recovery in oil prices, according to Bloomberg.
The UAE’s gross domestic product will expand 3.4 percent in 2018, largely on expectations that growth in Abu Dhabi will surge to 3.2 percent , the IMF forecasts. Dubai’s output will accelerate more moderately, to 3.5 percent, the Washington-based lender estimated.
“The non-oil sector both in Dubai and Abu Dhabi is almost growing at the same speed, around 3 percent,” Jihad Azour, Head of the IMF’s Middle East and Central Asia Department, told reporters in Dubai on Tuesday, as the IMF released its World Economic Outlook at the Dubai International Financial Centre, DIFC.
The IMF expects oil prices to average US$53 in the next two to three years. Saudi Arabia and Russia have indicated they support extending production cuts through 2018 to shore up prices.
The IMF expects Abu Dhabi’s non-oil economy to grow 3.3 percent next year from 3.2 percent in 2017, Azour said.
The continual progress made by the United Arab Emirates on global competitiveness indices corroborates the UAE government’s keenness to upgrade the country’s world rankings and provide robust legislative environment that acts as a strong enabler for economic growth for both the private and public sectors, according to a Ministry of Economy report.
The report sheds light on the achievements made by the nation in areas of competitiveness, stressing that the private sector has been empowered enough to play a major role in diversifying streams of income, creating job opportunities and enhancing product quality.
The document affirmed that the UAE’s wise leadership is determined to create a diversified, knowledge-based economy that ensures an advanced ranking for the country among the world’s top ten competitive countries.
The nation has set an example for the development of national human resources and application of best world practices in line with the pillars of the UAE Vision 2021, added the report, which reviewed the key milestones notched by the UAE in 2017, primarily its coming first regionally and 10th globally among the world’s most competitive countries according to World Competitiveness Yearbook for 2017, issued by the International Institute for Management Development in Switzerland.