A disappointing year for growth in the UAE
09 November, 2017 | By ELIZABETH BAINS
The UAE is seeing muted growth in 2017, estimated at less than 1.5 per cent, as low oil prices and production cuts weigh on the economy.
The non-hydrocarbons sector is faring much better, with GDP growth of more than 3 per cent, but it is largely Dubai’s preparations for hosting Expo 2020 that have been driving the market.
Capital spending in Abu Dhabi (outside the hydrocarbons sector, which is having a strong year for contract awards) remains constrained, with the focus instead on completing megaprojects such as the new airport terminal, the $1.6bn strategic tunnel enhancement wastewater project and the Louvre museum, which is due to open in November.
To boost income, the federal government is introducing new taxes, beginning with excise duties on tobacco and carbonated drinks this month and VAT to follow at the start of next year. While this makes good sense economically, for the ordinary person it is another leap in the cost of living in the UAE.
With about 80 per cent the population comprising expatriates, it is essential the country remains an attractive lure for foreign workers. The rising costs coupled with stagnant wages risk tipping the balance. In this regard, it is fortunate that property prices are weakening. What would usually be seen as a negative economic barometer, falling rents and sales prices on this occasion will be welcomed by the authorities as helping to soften the blow of the new taxes being introduced.
Related Posts
The substructure package is the largest contract to be tendered for the expansion of Al-Maktoum International airport
Dubai Aviation Engineering Projects (DAEP) has given selected bidders an end of July deadline ...
READ MORE
Abu Dhabi has re-engaged with stakeholders for the design and route alignment for the upcoming phases of Etihad Rail, the UAE’s federal railway network.
This includes the rail project’s second stage, ...
READ MORE
Subsidy attrition and nascent tax regimes, along with broader benefits to productivity and the economy, push region towards digital transformation
Anyone who has used the biometric smart gates at Dubai International ...
READ MORE
Contract awards on Bahrain’s airport and aluminium smelter drove a record performance in 2016
While the construction market in the rest of the GCC flounders as government spending dips, Bahrain has managed ...
READ MORE
Executive Council circular says contractors’ contracts should be amended to ensure prompt supply chain payments
Abu Dhabi has made further moves to address the payment problems facing the emirate’s construction sector. Its ...
READ MORE
Companies have submitted prequalification documents for the Concourse 1 and West Terminal Building substructure
Leading local and international contractors are in talks to form joint ventures for the contract to build ...
READ MORE
The speed at which the government has moved to control supply has left construction firms in the emirate wondering where new work will come from
Dubai’s construction sector has been turbocharged ...
READ MORE
Persisting weakness in the non-oil sectors makes the case for further stimulus efforts in the near term
The latest economic and fiscal data from the UAE caters to those inclined towards ...
READ MORE
Local developer Emaar has received fresh bids for the contract to build the world’s tallest man-made structure in Dubai.
It is understood that at least two groups bid for the contract ...
READ MORE
Construction work at the Expo 2020 site at Dubai South is steadily progressing
The Expo 2020 site’s location on the outskirts of the city means most people living in Dubai do ...
READ MORE
Dubai sets July deadline for Al-Maktoum airport bids
EXCLUSIVE: Abu Dhabi moves on stalled rail project
Region embraces its digital future
Construction sector grows as project spending peaks
Abu Dhabi orders construction payments to be made
Contractors in talks for Al-Maktoum airport construction
Focus turns to infrastructure as Dubai curtails real
UAE economy looks to recapture its appeal
Emaar receives bids for world’s tallest tower in
Work at Dubai Expo 2020 site keeps contractors
09 November, 2017 | .By ELIZABETH BAINS
