Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. On 19 June 2020, rating agency Moody's changed its outlook regarding eight banks in the United Arab Emirates from stable to negative. There are two that stand out. 2020 is shaping up to be an important year for the United Arab Emirates. Over the medium-term, and dependent on the speed of global recovery,  The UAE-Israel normalization deal could expand opportunities as it also involves trade/technology cooperation. T: +9714 311 6547 | F: +9714 332 8810 Get started with us today. United Arab Emirates: Consumer prices … To learn more about cookies, click here. Photo: Ministry of Presidential Affairs / WAM / Handout via Reuters. Find Out. Tourism to Dubai is expected to double to 6.6 per cent in 2020, coinciding with the event. Global data and statistics, research and publications, and topics in poverty and development. According to a report in Khaleej Times, International Monetary Fund forecasts that the gross official reserves of the UAE would grow from USD 76.8 billion in 2015 to USD 118.4 billion in 2020. In 2018, the emirate of Abu Dhabi announced a three-year stimulus plan worth 50 billion Dirhams, an amount equal to 1.8 per cent of their annual GDP, aimed at boosting their economy. The country is striving to diversify across industries. In their Regional Economic outlook on 28 October, they had initially given a provisional growth rate for the country’s gross domestic product (GDP) of … Dubai is hosting Expo 2020, and it will be sure to have a significant impact on the country. Our team of UAE business experts at Europe Emirates Group has the expertise you need to take advantage of everything that awaits in this exciting time for the Emirati economy, whether it be in the Free Zones, near the Expo or on the mainland. In their Regional Economic outlook on 28 October, they had initially given a provisional growth rate for the country’s gross domestic product (GDP) of 2.5 per cent in 2020. See all. The World Bank Group works in every major area of development. The IMF has also called the country to place more emphasis on medium-term measures rather than short-term spending. Economic growth remained unchanged at 1.7% in 2019 as the pick-up in the HC sector was offset by a slowdown in the rest of the economy. United Arab Emirates' Economic Update — October 2020. They’ve also implemented fiscal measures such as a new 100% foreign direct investment law, and have continuously implemented measures to make it even easier for companies to do business. Abu Dhabi city skyline. The medium-term non-hydrocarbon outlook remains uncertain and hinges on a rebound in tourism and trade following a global recovery. How will the UAE economy fare next year? The UAE economy is expected to suffer a deeper contraction this year than originally estimated, with the Central Bank of UAE projecting a -5.2 per cent GDP growth for 2020. The change was due to “the potential material weakening in their standalone credit profiles”, where the UAE's economy was facing additional challenges amidst the COVID-19 pandemic and low oil prices. [PDF] United Arab Emirates' Economic Update, October 2020, Environmental and Social Policies for Projects. Read more. Overall GDP contracted by 0.3% in Q1-2020, with non-HC GDP contracting by 1.9% y/y. United Arab Emirates' Economic Update — April 2020. P.O. The International Monetary Fund (IMF) has recently revised its growth projections for the Emirati economy for 2020. The UAE has been ranked amongst the top three Islamic economy countries in the world, according to the 2020 State of the Global Islamic Economy report. The weakening of oil prices could cause a decrease in government revenue. The IHS Markit Purchasing Managers’ Index (PMI) slumped to a record low of 45.2 in March from 49.1 in February. The Gross Domestic Product (GDP) in the United Arab Emirates expanded 2 percent in 2019 from the previous year. The International Monetary Fund (IMF) has recently revised its growth projections for the Emirati economy for 2020. Once the impact of the Abu Dhabi stimulus and Expo 2020 subside, what other potential risks are there to the economy in the UAE? IMF Mission Chief to the UAE and Yemen Koshy Mathai concluded that economic growth is picking up momentum and the GDP growth rates are going to be the highest since 2016. April 5, 2020. Economic growth. Box 73310, Dubai, U.A.E Economy | November 9th 2020 UAE remains proactive on coronavirus control and mitigation. However, following an Article IV consultation with authorities from the Emirati government, they have revised the provisional 2020 GDP growth rate to 3 per cent. An El Al plane is seen in the background landing at Abu Dhabi International Airport, in the United Arab Emirates, Aug. 31, 2020. More. The UAE’s non-hydrocarbon (non-HC) economy was already weakening prior to the pandemic as it faced persistently weak business sentiment and a prolonged real estate downturn. The current account surplus would grow from USD 17.6 billion in 2015 to USD 33.4 billion by 2020. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face. The UAE’s economy will contract in 2020 due to the disrupted engines of growth from COVID-19 pandemic containment efforts, OPEC+ oil production cuts, lower oil prices, reduced global oil demand, and disruption in global supply chains. Official estimates suggest non-oil real GDP growth slowed to 0.3% in Q2 2019. On the other hand, HC GDP increased by 3.3% as OPEC+ cuts ended. Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). 3706-3707 Platinum Tower (Cluster I) Modest inflation will return as growth rebounds. GDP Growth Rate in the United Arab Emirates averaged 4.23 percent from 2000 until 2019, reaching an all time high of 9.80 percent in 2006 and a record low of -5.20 percent in 2009. The IIF has projected GDP growth in Dubai to be 2 per cent. Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). If you continue to navigate this website beyond this page, cookies will be placed on your browser. Political tensions in the region, the 2007-08 global financial crisis and a prolonged decline in oil prices from late 2014 are together exerting downwards pressure on the emirate’s economic expansion. The government continues to provide mitigation support in response to the pandemic as businesses strive to recover, worsening the consolidated fiscal deficit. With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. The UAE economy’s projected growth will be driven by the energy sector, the media reports said. This page has economic forecasts for the United Arab Emirates including a long-term outlook for the next decades, plus medium-term expectations for the next four quarters and short-term market predictions for the next release affecting the the United Arab Emirates economy. This is an increase from 1.6 per cent in 2019, proving that the future looks bright for the Emirati economy going into the new decade. Download United Arab Emirates report: English. The UAE’s economy will contract in 2020 due to the disrupted engines of growth from COVID-19 pandemic containment efforts, OPEC+ oil production cuts, lower oil prices, reduced global oil demand, and disruption in global supply chains. Still, NBK did acknowledge that “the concentration of the non-oil economy in a few sectors such as construction, tourism and logistics could be limiting as these sectors cannot continue to grow at the same rates as before.” As such, sustaining non-oil growth after the Expo is crucial. The event, according to an independent study from Ernst & Young would contribute 1.5% of the overall GDP of the United Arab Emirates due to increased direct and indirect activity. Dubai, November 16 th, 2020 – Dubai Islamic Economy Development Centre (DIEDC) has announced the results of the State of the Global Islamic Economy Report (SGIE) 2020/21 with a theme of ‘Thriving in Uncertainty’. What factors are most responsible for this increased outlook? The United Arab Emirates is expanding its “golden” 10-year visa, and economic growth and productivity in Dubai are expected to grow as a result, state news agency WAM reported on Monday. We face big challenges to help the world’s poorest people and ensure that everyone sees benefits from economic growth. St. Vincent and the Grenadines Company Formation, Nominee Director and Shareholder Services, Legal Address Prepaid Mobile Communications Services, making it easier for them to access funding, The Top 5 Most Profitable Industries and Business Avenues in Dubai, Supporting Dubai’s New Generation of Female Business Owners, A Changing Mindset, a Shift in Power - Female Entrepreneurship in Dubai. In the wake of COVID-19, authorities aggressively implemented a containment strategy with strict lockdowns, postponed major events such as World Expo2020, imposed social distancing, and large-scale testing.