Economic growth of UAE is predicted to see its best future which is yet to come. According to the recent research and evidence put forward by the global think tank, UAE has just started to get better economically and in other fields. Growth will be highest and sequential in the coming years up until 2020. The growth of the economy will be because of the great exportation of oil in the region of Mena. While coming years will also bring a rise in oil prices, infrastructure, friendly reforms, the new law, and these sectors will also grow. Oil exportation rates in GCC countries will set a new record and the height of all yet from 2018 to 2019. The GDP is also expected to rise, 2 percent, 3 percent and then 3.2 percent in the years 2018, 2019, and 2020 respectively, this prediction was made by World Bank analysts. The oil output is increasing and so is the oil production targets in the month of June. The rise in exports and the economy is set to be at its initial state in the third quarter.
Growth in the Mena region is 2.0 percent this year, however, it is better from the last year which was 1.4 percent. GCC countries are set for the growth like 2.0 percent in the current year then 2.5 in next and 2.7 in the year 2020, according to another research. There is not just oil export from which the economy is expected to rise, UAE will also be getting a huge benefit from tourism in the coming years. The construction of tourist points like new and state of the art themed parks, future museums, and there is always tall and beautiful infrastructure like Burj al Khalifa. The GCC countries will also be getting some benefit from these rise in oil prices and overall Economic growth of UAE will rise.
By making more investments in the public sector and construction the growth will be higher than ever. Infrastructure investments related to the Expo of 2020 which will be hosted on UAE, Dubai, have been also started. The construction and manufacturing are happening like a hot knife through butter. In addition to all this, just a few time ago new reforms and investment laws will also be formed. The main concern related to these reforms is to make the investors confident and make more inflow of money.
Last week IMF reviewed and analyzed the rise in oil prices and UAE’s economy, then they forecasted that in 2018-2019 the rise will be 2.9 percent which was previously said to be 2.0 percent, similarly from 2019-2020 it is said to be going up from 3.0 to 3.7 percent. UAE’s economic growth is said to be raised and jump to a higher level, higher than before because they are focusing on both oil export based revenue and non-oil based too. The non-oil base revenue could come from tourists, infrastructure and many more things. Focusing on both and getting benefit from them will definitely increase the value. For this purpose, 47 percent of the total country’s revenue is allocated towards infrastructure. This infrastructure development will be covering the main hosting building of Expo 2020 and some other supporting projects like transport, residency, metro lines, roads, bridges, etc. This is also be preparing themselves for the post-expo events.
For the economic growth of UAE, it is important that it makes the distribution and growth better which will make capital much safe for the investments. This is important that UAE gives attention to tourism, education, healthcare, living, the communities in UAE and other major sectors. Tourism, e-commerce, transportation and logistics, healthcare, insurance, education, and energy industries will witness maximum development in upcoming years. These segments will grow and the remaining needs and growth will be fulfilled by the expo of 2020. The boost in trade, foreign investments, oil prices, tourism will take the economy high. However, now the World Bank is concerned about the job opportunities in the land. They analyzed that the growth rate is slow, whether the growth is highest of all time. This slow growth rate will be insufficient to produce many jobs. These developments are not enough to produce the number of jobs for unemployed young ones. This will become a challenge instead of an opportunity unless it creates sufficient jobs. But to create more jobs UAE is investing the amount of money that it has never in that specific sector. It is expected that along with the economic growth the number of jobs will also increase and the unemployed ones will get jobs they desire.