Page 453 - Ministry of Economy - December 2017

12/25/2017 Challenges may come, but UAE's ready for it - Khaleej Times

The UAE economy, resilient to global and regional headwinds, has been on a steady rebound in 2017, despite POLL
predictions of a slowdown in economic growth elsewhere in the region. Do you have plans to travel outside UAE this
New Year?
Economists and analysts predict that the UAE - marking its 46th year as one of the fastest-growing economies in the Yes
world - is set to almost double its expansion rate in 2018. No

The Institute of International Finance (IIF) affirms that the UAE is on track to be one of the best performers among SUBMIT
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.
(http://anax1ep.pressmart.com/KhaleejTimessupplements/31902/26_11_2017)
Riding a wave of diversification, particularly into tourism, non-hydrocarbon trade and financial services, the economy POPULAR VOTED
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.
VAT IN UAE (/BUSINESS/VAT-IN-
UAE)
The International Monetary Fund said in its latest outlook for the UAE that better days are ahead for the country with UAE reveals final VAT rates for
the economy right on track for a rebound with a 3.4 per cent surge in 2018. food, fashion, gold, cars and
67% more... (/business/vat-in-
uae/UAE-reveals-final-VAT-rates-
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 for-food-fashion-gold-cars-and-
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 more)
Notification cent growth recorded in 2009 in the wake of the global financial crisis.
5 December 2017
ABU DHABI (/NATION/ABU-DHABI)
The IIF said the UAE's economic performance would improve in 2017 and 2018 with firming oil prices, an UAE will have a Dh12 million
improvement in global trade and the expected easing pace of fiscal adjustment. But headline growth - oil and non-oil raffle winner next month
(/nation/abu-dhabi//uae-will-
combined - will decelerate to 1.5 per cent in 2017 due to oil production cuts under the extended Opec agreement. have-a-dh12-million-raffle-
winner-next-month-)
5 December 2017
"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 VAT IN UAE (/BUSINESS/VAT-IN-
Purchasing Managers' Index [PMI], retail sales and number of tourist arrivals over the first nine months of 2017, UAE)
suggest improvement in sentiment and private sector activity," said the IIF. UAE currency exchanges to pass
on VAT to consumers
(/business/vat-in-uae//uae-
currency-exchanges-to-pass-on-
The UAE's PMI averaged 55.8 in the first three quarters of 2017 as compared with 53.8 during the same period of last vat-to-consumers)
year (a 50.0 threshold separates expansion from contraction). Non-oil activity in Abu Dhabi is improving after a 5 December 2017
challenging two years during which deep government spending cuts slowed activity. Key projects, such as the
construction of nuclear plants and airport expansion, are progressing, albeit with delays, economists said. ABU DHABI (/NATION/ABU-DHABI)
No change in Abu Dhabi airport
baggage rules (/nation/abu-
While inflation in the UAE will remain subdued as the continued decline in rents offsets higher imports prices, dhabi/no-change-in-abu-dhabi-
inflationary pressures from the introduction of VAT on January 1, 2018 will be partly offset by further declines in airport-baggage-rules-)
6 December 2017
rents.
ECONOMY (/BUSINESS/ECONOMY)
Banks in the UAE are well-regulated and supervised and continue to weather the effects of low oil prices and the UAE 'disappointed' at inclusion
moderation in non-oil economic activity. Most analysts expect annual credit growth to recover from 1.7 per cent at in tax haven blacklist; confident
of swift removal in 2018
end-2017 to about five per cent in 2018. (/business/economy/uae-
disappointed-at-inclusion-in-
tax-haven-blacklist-confident-
They are also of the view that ongoing UAE reforms to develop the domestic capital markets would increase of-swift-removal-in-2018)
financing and saving options in the economy. 7 December 2017

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