Strong spending by the government of the United Arab Emirates will continue to support economic growth in the Arab nation in 2015 and 2016, thanks to massive financial reserves.
The country has abundant reserves that enable it to continue spending on a number of projects and investments that underpin economic diversification efforts, according to a report by the Arab Monetary Fund (AMF).
The fund kept its UAE growth forecast for 2015 unchanged at 3.6 per cent and 3.8 per cent in 2016 driven by projected global economic recovery and higher consumer spending at home.
According to the fund’s Arab Economic Outlook Report, the UAE’s crude oil output picked up in the first half of the current year and this will help make up the decline in oil revenues as a result of a plunge in prices.
Furthermore, Dubai’s economy will reap the fruits of 2020 Expo and associated events through non-stop $6.5 billion spending on infrastructure projects.
The high-profile global gathering is also expected to attract a massive 19 million tourists, the report published by Al-Ittihad indicates.
($1 = AED3.67, at the time of publishing)