THE UPWARD GROWTH OF THE U.A.E. ECONOMY

Driven by the non oil industry expansion, economic growth in the United Arab Emirates is catching up to its global peers.

The G.D.P. in the U.A.E according to the median estimate of 18 economists in the Bloomberg Middle East Economic Survey is forecast to grow 3.9 percent in 2013, , up from 3.4 percent in the previous quarter. That’s the biggest upward revision in the six-nation Gulf Cooperation Council, which also includes Saudi Arabia, the biggest Arab economy.The country’s non-oil economy is forecast to expand 4.5 percent this year, the fastest pace since 2008, according to data compiled by Bloomberg and International Monetary Fund estimates.

The growth in the U.A.E. has got the attention of the world. Mr. Simon Williams Dubai-based chief Middle East economist at HSBC Holdings P.L.C is one of the of many economist to have taken note. He said and I quote,“We have been optimistic about what we have been seeing in the U.A.E in the last 18 months, It’s a growth story that has substance and it’s gaining momentum. It’s a mix of the export-orientated service sector in Dubai coming back to life and also a slower but a significant recovery in infrastructure spending in Abu Dhabi.”

“Non-oil growth should spearhead activity this year, but hydrocarbon output is also expected to contribute positively,” Giyas Gokkent, chief economist at National Bank of Abu Dhabi P.J.S.C. Going against the odd, the crude oil output is up by 4.6 .The U.A.E sits on about 6 percent of the world’s proven oil reserves. Economy Minister Sultan Al-Mansoori said he expects gross domestic product to expand as much as 4.5 percent this year.

All growth and potential growth reinforces the point that U.A.E. is going to be in years to come the new business stop for companies around the world. U.A.E. is steadily creating a conducive environment for all business sectors and forms of business.

David Enyinnaya. M.I.B.
Consultant
International Business Relocation Specialist

M: +971508423965

E: david.enyinnaya@adamadvisors.com