Monday 01, October 2018 by Bloomberg

IMF expects Dubai's economy to ‘gradually recover’ ahead of Expo

 

The International Monetary Fund expects Dubai’s economy to gradually recover as the government accelerates spending in preparation for the Expo 2020 event.

Dubai’s gross domestic product will likely expand 3.3 per cent this year and 4.1 per cent in 2019, Natalia Tamirisa, the IMF mission chief to the United Arab Emirates, said in a phone interview late on Sunday. Dubai’s GDP grew 2.8 per cent in 2017, she said.

“The gradual recovery is progressing, and we see a similar pattern in Abu Dhabi,” Tamirisa said at the end of a two-week visit to the U.A.E. The IMF expects Abu Dhabi’s non-oil economy to grow 2.3 per cent in 2018 and 3.6 per cent the following year, as the government ramps up spending.

Regional and federal authorities in the UAEhave announced a series of measures over the past year to bolster economic growth. The steps include a plan to offer some expatriates long-term residencies, reduce government fees and easing some restrictions on full foreign ownership of businesses.

Abu Dhabi also unveiled a three-year, $13.6 billion economic stimulus program to encourage new industries and attract foreign investment.

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