UAE’s economy will blossom despite the US crisis, doldrums in Europe, slow in China

WAM Dubai, 1st Nov. 2013 (WAM) — A set of indications show that the UAE’s economy will blossom despite the US crisis, the doldrums in Europe and a slowing China, according to an editorial published by Khaleej Times on Friday.

”The Institute of International Finance’s assessment that the UAE’s GDP is growing by 4.7 per cent in 2013, up from the earlier estimate of 3.9 per cent, comes as no surprise. There have been several indications that the economy would blossom despite the US crisis, the doldrums in Europe and a slowing China. On one hand some of the tigers of world economy have taken a beating from the global slump,” the Dubai-based paper said.

”The US growth rate has been confined to around 2.3 per cent from the earlier 2.6 per cent, India saw its growth downgraded to 4.7 per cent from 6.1, and Japan was pegged at an average 2 per cent growth, despite prime Minister Shinzo Abe’s economic rehaul. But the UAE’s economy, on the other hand, has accelerated due to higher government spending in Abu Dhabi, and higher trade, tourism and transportation in Dubai as well as the capital,” it added.

”The Ease of Doing Business report, released on Tuesday, provided a reason for the Emirates’ stalwart performance. The survey by the World Bank Group, ranking 189 economies, saw the UAE topping in the Arab world and up three places in the world order, placed 23rd. The group said the UAE was one of the world’s best places to do business in for a variety of reasons. They range from the ease with which a venture can start rolling, getting electricity, paying taxes, and trading across borders.” ”The inauguration of Al Maktoum International Airport in Dubai this week is a significant development that will add to the growth in 2014 and beyond, strengthening transport and tourism. However, the icing on the cake would come if Dubai wins the bid to host Expo 2020. The run-up years to the event would start to see the benefits, with investments pouring in, and infrastructure improving.

”The property market, one of the Emirates’ key economic boosters, has already started witnessing a boom, thanks to the Expo fever. The Global Property Guide said prices rose nearly 18 per cent in the second quarter of the year and Dubai was accorded the top spot among 42 cities. While some organisations like the International Monetary Fund have urged for regulatory measures, fearing a market crash like in 2008, others like Standard Chartered Bank have discounted the fears, saying there are no bubbles, it’s the improvement in the economic fundamentals that is driving the property market.” Finally, Khaleej Times concluded by saying that ”while not hit by the turbulence in the region, the UAE would be benefiting from the positive developments in its neighbourhood. Just as the benefits of a World Expo in Dubai would percolate down to the GCC region, Qatar’s hosting World Cup 2022 is also expected to give a friendly impetus to the UAE growth saga.” WAM/TF

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