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UAE economy to grow faster at 4.2% in 2019

Dubai - The non-oil GDP to grow 3.7 per cent in 2019 as compared to 3.3 per cent in 2018.

The UAE's GDP is expected to grow substantially faster at 4.2 per cent next year, driven by both oil and non-oil sectors, the Central Bank governor said on Tuesday.

While speaking at the Institute of International Finance (IIF) Mena Financial Summit in Abu Dhabi, Mubarak Rashed Al Mansoori said projected that UAE's gross domestic product (GDP) to grow 2.8 per cent this year.
Expecting higher non-oil sector growth for next year, Al Mansoori said non-oil GDP to grow 3.7 per cent in 2019 as compared to 3.3 per cent in 2018.
"Things are starting to materialise; growth is there, liquidity is there, a lot of government initiatives have been announced. I think we are in good times," Al Mansoori said during a panel discussion at the conference.
Commenting on the value-added tax (VAT), Al Mansoori said the implementation of taxation will have a one-time effect on inflation, which is expeted to be around 3.6 per cent this year, almost in line with the IMF's 3.5 per cent projection.
The governor, however, ruled out any material impact of US sanctions on Iran on the UAE's econmy.
He revealed that the merger of the three Abu Dhabi banks - Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank - is at early stage. Al Mansoori expects more consolidation in the UAE banking sectors in the near future.
-waheedabbas@khaleejtimes.com