The GDP growth is likely to be 4.2 percent, as compared to 2.8 percent in 2018. This was reported in the IIF Mena Financial Summit held in the capital of UAE, Abu Dhabi. This shows enhanced potential for UAE companies to experience growth and benefit greatly.
This positive growth is expected due to the increase in oil prices, along with robust government strategies to uplift UAE’s economy. This is directly reported by the governor of UAE Central Bank.
The new laws by the governments include; Debt Law, Investment Law and Bankruptcy Law. These laws will act as high incentives to encourage more investments in UAE. As a result, the investment environment is likely to drive the economic growth in this country.
Even though there may be various obstacles in the businesses, new laws will enable businesses to experience success. Moreover, private sector is forecasted to thrive, and it is noted that credit growth to the private sector will also rise by 6.5%. Thus, this is an optimistic sign for UAE’s economy.
UAE earned 77 percent from non-oil contribution, which allowed the country to survive the plunge of low prices in oil. In 2018, inflation was noted to be 3.6 percent. Particularly because of the introduction of value added tax since January this year. Therefore, growth is identified, liquidity is present and several new government laws are implemented. Therefore, the governor stated that UAE’s economy is in good times.