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 Health Authority (DHA) has been working to make the payment process simpler for hospitals and insurance companies.
In this regard, DHA has started implementing the new insurance payment system, ...
READ MORE
The impact of the health crisis on the region’s economies continues to play out
On 22 March, Dubai-based Emirates airlines announced the shocking news that it was suspending all passenger services for ...
READ MORE
Extension is a result of the Covid-19 pandemic
Kuwait has extended the bid deadlines for all oil, gas and chemical tenders that are issued through the Central Agency for Public Tenders ...
READ MORE
Businesses around the Middle East recognise the relevance of ESG reporting, but the lack of uniform standards and frameworks complicates the approach
Key takeaways:
Supply chains stakeholders are becoming more vocal ...
READ MORE
Delivering world-class infrastructure today is essential to the success of the region tomorrow. Not only do today’s projects drive growth and create jobs, but they also lay the foundations for ...
READ MORE
UAE CONSTRUCTION THINK TANK
UAE CONSTRUCTION THINK TANK WHITEPAPER
The UAE Construction Think Tank has outlined 15 key recommendations to foster a new eco-system for the UAE construction sector.
INFOGRAPHIC: CONSTRUCTION VISION 2071
Technological ...
READ MORE
S&P Global Ratings says GCC states have sufficient access to foreign currency assets or external financial support
S&P Global Ratings (S&P) has said that the GCC’s pegged exchange rate regimes will ...
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
The inaugural MEED-Mashreq Business Leaders Forum served as a platform to discuss the impact of ESG principles on modern supply chains
Download the report
Actionable change is no longer limited to a ...
READ MORE
Coronavirus outbreak accelerates digital transformation, but also provides a stress-test for financial institutions
Click here to download MEED’s Covid-19 retail banking sector analysis
Covid-19 and the accompanying period of economic paralysis is leaving ...
READ MORE
The Rising Importance of Revenue Cycle Management in
Surviving the Covid-19 economic crisis
Kuwait extends oil and gas tenders by three
Responding to ESG demands
Driving better value in construction
Enabling change in UAE construction – MEED Mashreq
GCC’s pegged exchange rates to remain
MARKET TALK: Fall in oil prices creates an
Report: The ESG Impact on Modern Supply Chains
Retail banking faces severe trial under Covid-19
09 November, 2017 | .By ELIZABETH BAINS
