DUBAI / WAM
The UAE is forecast to achieve an average real GDP growth rate of 3.8% between 2019 and 2023, supported by an increase in investment flows and private consumption, according to new analysis from Dubai Chamber of Commerce and Industry.
The findings of the analysis, based on the Dubai Chamber UAE Macroeconomic Model, were revealed during a business seminar hosted by the Dubai Chamber which examined growth projections for the UAE and global economies, Dubai’s top export markets, and the most attractive export opportunities for Dubai traders.
The analysis identified other key factors that are expected to drive economic activity in the UAE, including expansionary fiscal policy and a growing number of infrastructure and construction investments in the run up to Expo 2020.
A recovery in private consumption and sales of highly cyclical consumer products is expected, extending to products such as vehicles, furniture, household appli- ances, and medical equipment. Meanwhile, robust growth in investment is projected on the back of government fiscal stimulus.
The real GDP for the UAE’s non-oil sector is projected to grow by an average of 4.1% between 2019-2023, compared to the 2.8% accounted for in the 2014-2018 period.
Momentum behind the UAE’s GDP growth over the next 5 years will likely be led by the country’s transport and communication sector which is set to record GDP growth of 7.9%, followed by construction (4.2%), and real estate and business services (3.8%).