International Finance

UAE economy to grow 2.5% in 2020: IMF

UAE economy
The UAE economy’s projected growth will be driven by the energy sector, World Expo 2020 and bold reforms

According to the International Monetary Fund (IMF), the UAE economy is expected to grow 2.5 percent in 2020. The forecasted number is significantly higher compared to the 1.6 percent estimated in 2019. 

The UAE economy’s projected growth will be driven by the energy sector, the media reports said. Also, the UAE’s non-oil economy’s growth will accelerate to 3 percent in 2020 from 1.6 percent in 2019. The country’s non-oil economic rise will be driven by the World Expo 2020 and major initiatives by the government. 

Economic diversification coupled with bold reforms are factors speeding up the UAE economic growth at a steady pace. Expo 2020 Dubai and the UAE government’s Dh50 billion fiscal stimulus is playing a vital role in the country’s non-oil GDP growth. 

In this context, First Abu Dhabi Bank (FAB) published its 2020 global investment outlook report providing key insights into macro-economic trends. 

Alain Marckus, managing director and head of Investment Strategy and Investment Management at FAB, in the report said, “The combination of improving global growth, alongside very low interest rates around the world, should continue to see risks assets do well in 2020. Ongoing global central bank accommodation also should see the emerging markets do well. The economic “long cycle” continues to be extended with opportunities available in value and income strategies, which we think will be the outperformers.” 

Last year, the UAE central bank said that it expected the country’s GDP to rise by 2 percent in the fourth quarter, WAM reported. 

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