Strong Dubai growth, higher oil price to drive UAE economy over next decade

The UAE has a favourable long-term growth outlook as the economy is expected to grow by 3.5 per cent annually over the next ten years.

According to the global think-tank IHS Insight, the UAE economy will be driven by strong growth in Dubai and an increase in Abu Dhabi’s oil exports due to rise in crude prices.

The UAE was ranked among 15 Europe, Middle East and Africa (EMEA) countries for investment hotspots that should offer good news to businesses.

“The UAE is forecast to grow at 3.5 per cent per year over the next decade, helped by a recovery in Abu Dhabi’s oil exports due to gradually improving oil prices over the medium term, as well as strong growth in Dubai’s economy.

“Dubai’s role as a leading global commercial aviation and shipping hub as well as tourism destination has helped to diversify the structure of the UAE economy,” said Rajiv Biswas, Senior Director for Economics at IHS Global Insight.

IHS Insight also forecast 3.5 per cent growth for Saudi Arabia, the region’s largest economy, as oil prices gradually recover over the medium-term.

“A new National Transformation Plan will increase non-oil revenue, while public spending has already been curtailed to narrow the fiscal deficit. Plans to create a Saudi mega sovereign wealth fund with around $2 trillion in assets will also help to finance a significant diversification in the structure of the Saudi Arabian economy,” the US-based think-tank said in a note.

Follow Emirates 24|7 on Google News.