UAE economy expected to bounce back in 2010
Stimulus efforts and oil expected to be main drivers
By Nadia Saleem, Staff Reporter, Gulf News
Published: 00:00 December 29, 2009
Dubai: Next year's growth outlook for the UAE looks promising, the Dubai Chamber of Commerce and Industry (DCCI) said on Monday.
In a new report, the chamber said that while 2009 had witnessed an economic contraction, the coming year will see growth of over 2 per cent, spurred mainly by improved economic activity and oil prices .
"Whilst growth is expected to be moderately flat on the back of falling export growth, consumer spending and investments flow, the economy is however, expected to bounce back in 2010," the report said
Aside from government spending and a projected increase in crude oil prices, the growth is expected on the back of a return in risk appetite and, alongside it, a growth in private consumption.
The Economist Intelligence Unit (EIU), in its forecast for 2010, predicted 3.4 per cent growth. It cited a gradual increase in oil output, the coming on stream of several large projects and increased construction activity in Abu Dhabi as the main drivers of economic growth.
The economy has already started showing signs of picking up as oil production increases slightly.
Hamad Bu Amim, director-general of DCCI, said the UAE is one of the first countries in the world to recover from the effects of the global financial crisis.
"The UAE Government has played a crucial role in getting the country's economy back on track by offering various timely sops and liquidity to the affected economic sectors. The joint efforts by the federal and local governments in meeting the obligations of various government entities have boosted the investor confidence as has the continuation of the government fiscal stimulus packages, and lower inter-bank lending make the outlook for the coming year more promising as we can look forward to a prosperous trading year," he said.
Despite the strong government measures this year, the IMF predicted the UAE's real GDP growth rate to contract by 0.2 per cent in 2009 due to a decline in the crude oil sector as production drops in line with agreed Opec cuts.
Increased state spending has provided support to the non-oil sector in view of the reduction in private demand and investment. Improving global economic conditions and a surge in oil production and prices is expected to lead to economic growth touching 2.4 per cent in real terms in 2010, the the Dubai Chamber report said.
Bu Amim said the consumer confidence is now at an all-time high as the UAE banking sector is showing signs of recovery while falling realty prices and rental costs have come as a relief to many Dubai residents and businesses alike.
"Dubai's exports have shown resilience in the wake of the economic downturn and will continue to register an upward trend in the coming year," he said
http://gulfnews.com/business/economy/uae-economy-expected-to-bounce-back-in-2010-1.559189
Stimulus efforts and oil expected to be main drivers
By Nadia Saleem, Staff Reporter, Gulf News
Published: 00:00 December 29, 2009
Dubai: Next year's growth outlook for the UAE looks promising, the Dubai Chamber of Commerce and Industry (DCCI) said on Monday.
In a new report, the chamber said that while 2009 had witnessed an economic contraction, the coming year will see growth of over 2 per cent, spurred mainly by improved economic activity and oil prices .
"Whilst growth is expected to be moderately flat on the back of falling export growth, consumer spending and investments flow, the economy is however, expected to bounce back in 2010," the report said
Aside from government spending and a projected increase in crude oil prices, the growth is expected on the back of a return in risk appetite and, alongside it, a growth in private consumption.
The Economist Intelligence Unit (EIU), in its forecast for 2010, predicted 3.4 per cent growth. It cited a gradual increase in oil output, the coming on stream of several large projects and increased construction activity in Abu Dhabi as the main drivers of economic growth.
The economy has already started showing signs of picking up as oil production increases slightly.
Hamad Bu Amim, director-general of DCCI, said the UAE is one of the first countries in the world to recover from the effects of the global financial crisis.
"The UAE Government has played a crucial role in getting the country's economy back on track by offering various timely sops and liquidity to the affected economic sectors. The joint efforts by the federal and local governments in meeting the obligations of various government entities have boosted the investor confidence as has the continuation of the government fiscal stimulus packages, and lower inter-bank lending make the outlook for the coming year more promising as we can look forward to a prosperous trading year," he said.
Despite the strong government measures this year, the IMF predicted the UAE's real GDP growth rate to contract by 0.2 per cent in 2009 due to a decline in the crude oil sector as production drops in line with agreed Opec cuts.
Increased state spending has provided support to the non-oil sector in view of the reduction in private demand and investment. Improving global economic conditions and a surge in oil production and prices is expected to lead to economic growth touching 2.4 per cent in real terms in 2010, the the Dubai Chamber report said.
Bu Amim said the consumer confidence is now at an all-time high as the UAE banking sector is showing signs of recovery while falling realty prices and rental costs have come as a relief to many Dubai residents and businesses alike.
"Dubai's exports have shown resilience in the wake of the economic downturn and will continue to register an upward trend in the coming year," he said
http://gulfnews.com/business/economy/uae-economy-expected-to-bounce-back-in-2010-1.559189