The UAE and Oman will be the Gulf region’s fastest growing economies in 2019, according to a new report by the Institute of International Finance (IIF).
The report, released on Wednesday, projected the UAE’s real GDP to grow 3.1% this year, up from the 2.9% estimated for 2018. Oman’s growth has also been predicted to reach 3.1%, while Bahrain’s real GDP is expected to grow 2.4%, Saudi Arabia’s 2%, and Kuwait’s 0.4%.
Despite the UAE’s predicted growth over last year, IIF analysts suggested growth would slow to 2.7% in 2020. They added that they expect the country’s nominal GDP to increase from Dhs1.59 trillion ($434bn) in 2018 to Dhs1.63 trillion ($458bn) in 2020.
In October, the International Monetary Fund forecast 3.7% growth for the UAE in 2019, and earlier this week the World Bank predicted growth of 3% in 2019, followed by 3.2% in 2020 and 2021 – up from the 2% it estimated for 2018.
In November the governor of the UAE Central Bank, Mubarak Rashed Al Mansoori, said he expects the country’s GDP to grow by 4.2% in 2019 on the back of stronger than expected growth in 2018.
“Things are starting to materialise, growth is there, liquidity is there, a lot of government initiatives are there. I think we are in good times,” he said at a conference in Abu Dhabi.
Source Credit: Gulf Business