Page 448 - Ministry of Economy - December 2017

12/25/2017 Challenges may come, but UAE's ready for it | ZAWYA UAE Edition
The Institute of International Finance (IIF) affirms that the UAE is on track to be one of the
best performers among the Middle East and North African economies over the next five

years as its vibrant growth continues to be driven by trade and tourism.

"The UAE continues to be the best managed economy in the region. It possesses large

financial buffers - estimated at around $670 billion, safe-haven status, excellent
infrastructure and a relatively diversified business-friendly economy, which will help the

economy cope with the prolonged low oil price environment," says Garbis Iradian, chief
economist for the Washington-based IIF.

Riding a wave of diversification, particularly into tourism, non-hydrocarbon trade and
financial services, the economy is better-positioned than its peers to continue to mitigate

the adverse impact of low oil prices. Hydrocarbon GDP accounts for only 30 per cent of
total GDP and oil exports for slightly less than 40 per cent of total exports.

The International Monetary Fund said in its latest outlook for the UAE that better days are
ahead for the country with the economy right on track for a rebound with a 3.4 per cent

surge in 2018.

Jihad Azour, director of the Middle East and Central Asia at the IMF, projected a 1.3 per

cent growth in UAE's real GDP in 2017, while the overall GCC growth is expected to
bottom out at 0.5 per cent this year, the lowest since the 0.3 per cent growth recorded in

2009 in the wake of the global financial crisis.

The IIF said the UAE's economic performance would improve in 2017 and 2018 with

firming oil prices, an improvement in global trade and the expected easing pace of fiscal
adjustment. But headline growth - oil and non-oil combined - will decelerate to 1.5 per cent

in 2017 due to oil production cuts under the extended Opec agreement.

"We expect non-oil real GDP growth to accelerate to three per cent in 2017 and 3.5 per

cent in 2018, supported by investment and non-oil exports of goods and services. Several
high frequency economic indicators, including the Purchasing Managers' Index [PMI], retail

sales and number of tourist arrivals over the first nine months of 2017, suggest
improvement in sentiment and private sector activity," said the IIF.

https://www.zawya.com/uae/en/story/Challenges_may_come_but_UAEs_ready_for_it-SNG_104779608/ 2/5