The UAE’s economic growth will top 3.5 per cent this year despite the oil price slump as the non-oil sector continues to expand, says Sultan Al Mansouri, the Minister of Economy.
National GDP will rise to Dh1.6 trillion this year from Dh1.5tn last year, according to a statement yesterday from the minister.
The UAE was able to maintain its economic growth because of its diversification policy and increased reliance on the non-oil sector, said Mr Al Mansouri.
The industrial sector, for example, contributes between 10 and 14 per cent of GDP.
Industrial investments in the UAE would double in five years, said the minister.
The ministry, he said, was also working on strengthening the economy’s competitiveness by boosting foreign direct investment flows and improving economic ties with other countries.
The IMF has forecast UAE economic growth of 3 per cent this year, down from 4.6 per cent last year, as the oil slump results in weaker real estate and corporate activities.
The price of the benchmark Brent crude has plunged about 50 per cent this year to under US$50 per barrel because of the supply glut and weaker demand in Asia. A strong US dollar has also weighed on oil prices.
The IMF also said that government spending cuts would affect economic growth in the UAE. It expects the country’s non-oil GDP to grow 3.4 per cent this year, versus 2 per cent for the oil sector.
Standard Chartered projects the UAE’s GDP growth at between 3.5 and 4 per cent this year, but Standard and Poor’s expects growth of just 2 per cent.
The UAE is expected to post a fiscal deficit of 2.9 per cent of GDP in 2015, as the oil price collapse is hurting the country’s main source of income, according to IMF estimates.
The IMF had forecast in January that tumbling oil prices would drain Arabian Gulf countries’ exports by US$300 billion this year, or a fifth of their economy.
dsaadi@thenational.ae
* With additional reporting by Wam
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
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The White Lotus: Season three
Creator: Mike White
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Rating: 4.5/5
A MINECRAFT MOVIE
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UAE currency: the story behind the money in your pockets
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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The Transfiguration
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Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
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More from Neighbourhood Watch:
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