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Economy: UAE expects 3 to 3.5 per cent GDP growth in 2015 and 2016
Dubai to clock 4 per cent, while Abu Dhabi is set to grow nearly 5.2 per cent
December 20, 2015 3:38 by fpilkington
On the sidelines of the third UAE Economic Outlook Forum in Abu Dhabi, His Excellency Sultan bin Saeed Al Mansouri also said that the country’s GDP is expected to grow at the same rate in 2016 as well.
“If we continue to see minimum increase in the price of oil, we expect a three to 3.5 per cent growth in 2016,” Al Mansouri remarked.
Oil affects the game
Mubarak Rashid Al Mansouri, central bank governor, said last month that he was expecting the economic growth to slow to three per cent this year as the slump in oil took a toll on investment.
The lender of last resort had estimated that the GDP will grow at an annual rate of four per cent in 2015 in its quarterly economic review for the second quarter of the year.
The global benchmark Brent crude has plunged more than 50 per cent since last year and hit a six-year low of $40.69 per barrel, on Monday of last week.
The minister said the country was aiming to scale down the share of hydrocarbon revenues in its economy by 20 per cent by 2025. Oil receipts accounted for 30 per cent in 2014.
Rashid Ali Al Zaabi, acting executive director of planning and statistics sector at Abu Dhabi’s Department of Economic Development, said at the forum that the emirate’s GDP is expected to grow by nearly 5.2 per cent this year and four per cent in 2016.
“Next year’s growth will be affected by oil prices. After the recent OPEC meeting, there will be some impact,” added Al Zaabi. He also anticipates an average 4.2 per cent growth between 2015 and 2019.
Meanwhile, the Dubai government expects nearly four per cent GDP growth this year, according to an official.
“Dubai has achieved four per cent growth in the last four years. The expectation is four per cent growth (at the) end of the current year,” Sami Al Qamzi, director general of the Dubai Department of Economic Development, remarked at the conference.
Article originally published on AMEinfo, sister publication of Kippreport.