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
The Dubai airport expansion project is expected to cost $33bn
Dubai Aviation Engineering Projects (DAEP) has invited contractors to prequalify for a major construction contract on the $33bn Al-Maktoum International airport ...
READ MORE
Mashreq, one of the leading financial institutions in the UAE, today has reported its financial results for the first quarter ending 31st March 2018.
Key highlights [1Q 2018 vs 1Q 2017]:
...
READ MORE
The Mena region is expected to be hit harder and recover more slowly in 2021 than the global average in the IMF’s baseline scenario
The Washington-based IMF has projected a GDP growth ...
READ MORE
Medium-term risks analysed as Covid-19 spreads
The rapid spread of the new coronavirus that emerged in the Chinese city of Wuhan in December 2019 has started to impact global economic markets.
More ...
READ MORE
Economic contraction estimates deepen for 2020, with rebound of 2.1 per cent expected in 2021
The Washington-based IMF has announced further cuts to its outlook for the GCC region, where a GDP ...
READ MORE
Governments across the Mena region are recognising the need to strategise their renewable energy investments
With nearly $76bn worth of renewable energy projects planned or underway, according to regional projects ...
READ MORE
Minister says innovation is needed if the UAE wants to play a leading role in the global economy
The UAE will have to develop new and innovative infrastructure if it is ...
READ MORE
Government-led projects will be the focus for construction across the region in 2019 while public-private partnership schemes remain in vogue
The region’s construction market over the past five years has been ...
READ MORE
GlobalData foresees more complex and comprehensive power-purchase agreements post Covid-19
Confinement measures to combat Covid-19 could have drastic implications on existing and new power-purchase agreements (PPA) around the world.
According to a GlobalData ...
READ MORE
MEED/Mashreq construction partnership celebrates its first anniversary
This month sees the first anniversary of the MEED/Mashreq construction partnership.
The MEED/Mashreq construction partnership was launched in June 2017 to support the development of ...
READ MORE
Prequalification starts for Al-Maktoum airport terminal works
Mashreq posts a 9.5% increase in Net Profit
Middle East economy to shrink 3.3 per cent
Coronavirus’ impact on Middle East economies
IMF forecasts 7.1 per cent drop in GCC’s
BRIEFING PAPER: Sustainable Vision
UAE sets sights on future with innovative infrastructure
The region’s project pendulum swings
Power purchase negotiations expected to slow
Supporting transformation in UAE construction
09 November, 2017 | .By ELIZABETH BAINS
