A disappointing year for growth in the UAE
09 November, 2017 | By ELIZABETH BAINS
The UAE is seeing muted growth in 2017, estimated at less than 1.5 per cent, as low oil prices and production cuts weigh on the economy.
The non-hydrocarbons sector is faring much better, with GDP growth of more than 3 per cent, but it is largely Dubai’s preparations for hosting Expo 2020 that have been driving the market.
Capital spending in Abu Dhabi (outside the hydrocarbons sector, which is having a strong year for contract awards) remains constrained, with the focus instead on completing megaprojects such as the new airport terminal, the $1.6bn strategic tunnel enhancement wastewater project and the Louvre museum, which is due to open in November.
To boost income, the federal government is introducing new taxes, beginning with excise duties on tobacco and carbonated drinks this month and VAT to follow at the start of next year. While this makes good sense economically, for the ordinary person it is another leap in the cost of living in the UAE.
With about 80 per cent the population comprising expatriates, it is essential the country remains an attractive lure for foreign workers. The rising costs coupled with stagnant wages risk tipping the balance. In this regard, it is fortunate that property prices are weakening. What would usually be seen as a negative economic barometer, falling rents and sales prices on this occasion will be welcomed by the authorities as helping to soften the blow of the new taxes being introduced.
Related Posts
Much debate remains on the risks of building nuclear energy facilities across the region, despite the need for greater capacity to meet demand
The past year saw two of the region’s ...
READ MORE
Contract awards on Bahrain’s airport and aluminium smelter drove a record performance in 2016
While the construction market in the rest of the GCC flounders as government spending dips, Bahrain has managed ...
READ MORE
Contractors submitted bids for the estimated AED10bn ($2.7bn) package in January
Dubai Aviation Engineering Projects (DAEP) has invited selected bidders to submit revised prices for the estimated AED10bn ($2.7bn) substructure contract for Concourse ...
READ MORE
The region’s construction and wider projects market must start incorporating sustainable practices in the planning and delivery of projects
As countries around the world commit to reducing their carbon emissions, the ...
READ MORE
Contractors warns that firms do not have the resources to support the development of a large number of projects at one time
Public-private partnership (PPP) projects around the world face a ...
READ MORE
Momentum in Dubai’s construction cycle has slowed
The Gulf construction market is at a challenging turning point and many construction companies are becoming increasingly concerned about where the next opportunities are ...
READ MORE
The AED100bn ($27bn) Targeted Economic Support Scheme (Tess) was launched in March
The UAE Central Bank has extended its economic stimulus package until the end of the first half of next ...
READ MORE
Understanding specific industries means the Dubai-based bank can understand and address the issues the construction industry faces
MEED: How have Mashreqs operations evolved to meet the needs of the changing market?
Mohammad ...
READ MORE
Interview: Abdul Aziz al-Ghurair, CEO of Mashreq
Traditionally seen as rocks of stability, banks over the past decade have been on a roller-coaster ride that has gone from the highs of ...
READ MORE
Analysts predict rising inventories will weigh on prices
The US Energy Information Administration (EIA) is expecting the average price of crude to be lower in 2020 than in 2019 due to ...
READ MORE
Region makes progress on nuclear energy projects
Construction sector grows as project spending peaks
Bidders asked for revised prices for Al-Maktoum airport
Decarbonisation is the next phase for Mena construction
PPP projects face contracting bottleneck
The next steps for construction
UAE central bank extends stimulus package
MARKET TALK: Sector focus helps Mashreq service clients
MARKET TALK: Fall in oil prices creates an
Lower oil prices forecast for 2020
09 November, 2017 | .By ELIZABETH BAINS
