International Finance
Economy

UAE to see higher growth due to greater spending

UAE economy
The UAE’s economy is projected to grow by 2.3% in 2019, according to its central bank

The UAE’s economy is projected to have a higher growth rate in 2019, compared to the year earlier, according to the Central Bank of the United Arab Emirates.

According to the apex bank, the improved growth outlook for 2019 is based on rising public and private spending at the federal and emirate levels. Greater investments in light of Dubai Expo 2020 and continued regional economic recovery will also contribute to UAE’s economic growth.

UAE’s economy is projected to grow by 2.3 percent in 2019. The economy had a growth rate of 1.7 percent in the previous year.

The economy is also expected to continue growing in 2020 as well, according to the latest forecast by the International Monetary Fund (IMF) and the Institute of International Finance (IIF).

The International Monetary Fund, after a discussion with the UAE’s government, revealed that the Emirates’ economy will grow by 3 percent in 2020. The growth rate is only expected to increase as the year progresses.

Garbis Iradian, chief economist at the Institute of International Finance, Middle East and North African region, told the media, “We expect non-hydrocarbon real GDP growth to pick up to 1.7 percent in 2019 and 2.2 percent in 2020, supported by Abu Dhabi’s three-year stimulus package and Dubai’s spending linked to Expo 2020.

According to the forecast, Abu Dhabi’s GDP would grow by 2.3 percent in 2019 and by 2 percent in 2020. Similarly, Dubai’s economy is expected to record 2.1 percent and 2.3 percent growth respectively.

However, according to reports, growth in the UAE’s non-oil private sector slowed to a 10-year low in November. It was the UAE’s weakest growth rate since August 2009.

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