According to MEED’s annual UAE Outlook Report for the year 2016, GDP growth rise of 4-5% a year will be witnessed in the coming years, from 2017 to 2020. The acceleration in GDP will be the result of the recovery of oil prices, growing private and public sector of UAE and Dubai’s colossal preparations for Expo 2020.
UAE is one of the largest oil exporters in the world, and its economy is increasingly diversified. It has about $500 billion worth of private and public savings.
MEED is a senior management media brand which was established in 1957. Since its launch, it has played vital role in delivering business news and information, analysis and intelligence on Middle East activities and economies. It has offices in Dubai, London, Riyadh and Mumbai and has been providing business news to more than 70 countries worldwide.
The UAE Outlook Report estimates 2016’s GDP growth rate at 3.1% whereas IMF has predicted the GDP growth rate for 2016 at 2.3% and 2.5% for the next year.
The UAE Outlook Report is based on MEED’s expectations that average price of UAE oil exports will reach $37 a barrel this year, rise to $50 a barrel in 2017 and eventually increase by 10% every year till 2020. The report also anticipates that UAE will produce on average 2.8 million bpd in 2016 – oil production will grow by 1.5% a year until 2020 to keep up with demand.
MEED’s report mentioned that major projects worth of $155 billion were already under construction in UAE by mid-2016. Other projects which are worth of $629 billion are also in the pipeline.
In the first half of 2016, around $22.6 billion worth of project contracts were awarded in UAE. Out of these $22.6 billion, about $16 billion worth of contracts were driven by transport, real estate and power projects in Dubai. According to MEED’s calculations, a total of about $37 billion worth of project contracts will be awarded in 2016.
Throughout 2006 to 2015, UAE was awarded an estimated $507 billion worth of projects – this figure represents 35% of the total contract projects awarded in the GCC during that period.
According to the report, sectors in UAE which will attract the future major projects include construction and transportation. Apart from this, plans for Abu Dhabi’s light rail and metro are also being developed. Expansion of Etihad Rail’s federal railway and Al-Maktoum International airport is also be executed shortly.
As per the calculations of IMF, UAE is expected to export $54.5 billion worth of oil products, oil and gas this year. This figure is estimated to reach $64.8 billion by 2017.
Richard Thompson, MEED’s Editorial Director, quoted to have said that Dubai, Metro, and other road projects besides airport, retail and real estate and renewables and power projects would be Dubai’s primary growth drivers. Furthermore, in Abu Dhabi, downstream manufacturing, and tourism projects on Saadiyat and Yas Islands would be the capital’s growth drivers.
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