Page 442 - Ministry of Economy - December2017

12/25/2017 Challenges may come, but UAE's ready for it | MENAFN.COM
activity. Key projects, such as the construction of nuclear
plants and airport expansion, are progressing, albeit with

delays, economists said.

While in ation in the UAE will remain subdued

as the continued decline in rents offsets higher

imports prices, in ationary pressures from the

introduction of VAT on January 1, 2018 will be

partly offset by further declines in rents.

Banks in the UAE are well-regulated and supervised and
continue to weather the effects of low oil prices and the

moderation in non-oil economic activity. Most analysts expect
annual credit growth to recover from 1.7 per cent at end-2017

to about ve per cent in 2018.

They are also of the view that ongoing UAE

reforms to develop the domestic capital markets

would increase nancing and saving options in

the economy.

A joint report by the Institute of Chartered Accountants in
England and Wales and Oxford Economics says that the UAE
will record an accelerated growth in 2018 to 3.6 per cent from

1.7 per cent in 2017. The momentum will further gain pace in
2019 to post 3.6 per cent growth. The report echoes the GDP

growth projected by the IMF, which said recently the UAE
economy; overall GCC growth, meanwhile, is poised to
rebound to 2.2 per cent.

Sultan bin Saeed Al Mansouri, UAE Minister of

Economy, said that the outlook for the economy

is brightening despite regional and global

macroeconomic challenges.

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