The UAE is stepping up its efforts to support non-oil activities/Bloombergby Kudakwashe Muzoriwa
The Institute of Chartered Accountants in England and Wales (ICAEW), said that Expo 2020 Dubai, which is anticipated to attract 25 million visitors is forecasted to contribute around 1.5 per cent of the UAE’s overall GDP in 2020.
The implementation of fiscal packages in Abu Dhabi and Dubai and the Central Bank of UAE's interest rate cuts in accordance with the US Federal Reserve is expected to support private sector credit growth.
In a report, Economic Update: Middle East Q4 2019, ICAEW stated that the expansion in non-oil activity is slowly beginning to translate into stronger job creation, although at a modest rate.
The UAE is stepping up its efforts to support non-oil activities, however, ICAEW said that these measures are yet to have a significant impact on the country’s non-oil activity.
Furthermore, ICAEW said that despite a pick-up in real estate transactions and employment, residential home sell prices continue to slide in both Abu Dhabi and Dubai.
The accountancy and finance body said that the market conditions are unlikely to see much of a rebound in H1 2020, reflecting expected strong supply growth and continued subdued demand.
Although the legacy of Expo 2020 is hard to estimate, the investment climate remains positive with infrastructure upgrades, said ICAEW.