The International Monetary Fund (IMF) estimates that the UAE will experience overall GDP growth of 2.5 percent next year as the economy recovers from a challenging period.
The Fund added that non-oil growth could exceed 1 percent in 2019 and increase to around 3 percent in 2020, the highest figure recorded since 2016, as the country benefits from Expo 2020 and fiscal stimulus.
“Sustaining robust non-oil growth after Expo 2020 remains a key priority, made all the more pressing over the longer term by the likelihood that global oil demand will slow in the face of technological advances, as well as policy responses to climate change,” IMF team leader Koshy Mathai said following a staff visit to the UAE.
Mathai added that Emirati authorities have two key policy priorities: to promote the growth of the non-oil private sector, including small and medium-sized enterprises (SMEs); and to strengthen fiscal frameworks so they can save a sufficient amount of oil wealth for future generations.
Lowering startup costs, operationalizing the new insolvency framework, and promoting greater financial inclusion were all measures which the IMF suggested were key to developing SMEs in the country.
The IMF team were visiting the UAE for its Article IV 2019 mission. Article IV missions usually happen on an annual basis as part of the IMF’s ongoing economic surveillance policy. Missions consist of a team of economists which assess the country’s economic and financial developments and discuss policy with authorities.