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
Mashreq CEO says customers can expect a transformation in the way they do their banking
The banking sector is on the cusp of a robotics revolution that is set to transform ...
READ MORE
UAE minister confirms restarting preparations for the second stage of 1,200-kilometre railway network
UAE Infrastructure Development Minister Abdulla Belhaif al-Nuaimi has confirmed that Etihad Railway, the federal railway authority, is seeking ...
READ MORE
Chinese investors and contractors already have an active presence in both markets
A Chinese official has said that Beijing will develop more projects in the UAE and Algeria as it commits ...
READ MORE
By encountering first gas from the Ruwais Diyab unconventional play, Adnoc has taken a leap forward towards its 2030 gas production goal
Abu Dhabi National Oil Company (Adnoc) has encountered gas in Abu ...
READ MORE
Foreign currency bonds worth about $40bn have been issued so far this year, with more to come as Gulf governments try to bridge large budget deficits
This year has seen a ...
READ MORE
Recent discoveries will make the Abu Dhabi-led drive for gas self-sufficiency a shared endeavour with the emirates of Sharjah and Dubai
With natural gas now firmly established as the global power ...
READ MORE
The MEED Mashreq Construction Partnership is a knowledge-sharing initiative that was started in 2017. The aim is to provide a platform for senior industry executives to discuss and address the ...
READ MORE
The economic stimulus package approved in June has been followed by a flurry of tendering activity
Abu Dhabi’s construction sector was given a boost in early June when Crown Prince Sheikh ...
READ MORE
All new economies will rely on sustainability and digitalisation, Bee’ah group CEO Khaled al-Huraimel tells MEED
Sharjah will be the first city in the Middle East region to reach zero waste ...
READ MORE
Adnoc Onshore is preparing to invite bids for two contracts aimed at developing its North East Bab site, according to industry sources.
The subsidiary of Abu Dhabi National Oil Company (Adnoc) ...
READ MORE
EXCLUSIVE: Robots set to transform GCC banking
Official confirms Etihad Rail stage 2 tender release
China to develop more projects in UAE and
Regional unconventional agenda gains momentum
Pandemic drives Gulf governments to debt markets
UAE’s gas discoveries bring self-sufficiency goal closer
Reengineering Construction – MEED Mashreq Construction Partnership Newsletter:
Resurgent Abu Dhabi creates new challenges for construction
Bee’ah sets sights on digitalisation and renewable energy
Adnoc prepares to invite bids for two field
09 November, 2017 | .By ELIZABETH BAINS
