Page 390 - Ministry of Economy - December 2017
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12/25/2017 UAE - economic, tourist and commercial capital of 2 billion people -
in October. As a result, the index moved further above the 50-point
threshold that separates expansion from contraction in the non-oil
producing private sector.
The monthly PMI through the third quarter of the year resulted in the
strongest quarterly expansion of the non-oil economy over a two-
year period.
The October gure was underpinned by faster output growth, an
expansion in new orders and new export orders, while employment
growth continued, marking 18 months of continuous job creation. On
the price side, input price in ation was subdued, while output prices
fell for the second consecutive month on the back of intense
competition.
Focus Economics Consensus Forecast participants expect the UAE’s
GDP to grow by 3.2 percent in 2018 and 3.4 percent in 2019, with
xed investment increasing by 3.7 percent in 2018 and 4.3 percent in
2019.
Despite the pressures, the Central Bank recorded a three-month rise
in bank deposits in the third quarter, another indication of the
improved health of the economy.
Excise Tax
E ective October 1st 2017, the UAE marked the beginning of a new
era in its history, as it started implementing the Excise Tax, exactly
three months ahead of the launch of Value-Added Tax, VAT, another
landmark region-wide tax initiative.
“As President His Highness Sheikh Khalifa bin Zayed Al Nahyan issues
Federal Decree-Law No. 07 of 2017 on Excise Tax, the UAE takes a
great leap forward,” H.H. Sheikh Hamdan bin Rashid Al Maktoum,
Deputy Ruler of Dubai and UAE Minister of Finance and Chairman of
the Federal Tax Authority, FTA, was recorded as saying. “We are
making remarkable progress in our plans to establish a sound
legislative infrastructure to support the UAE’s tax system and make
sure it meets and exceeds international best practices.”
The step is expected to diversify Government economic streams,
strengthening the economy and ensuring sustainability, he noted.
“The Excise Tax, in particular, will help us build a healthier and safer
society,” Sheikh Hamdan said. “This tax is set to discourage the
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