The UAE’s economic growth in 2019 is projected to top overall growth across the Gulf Cooperation Council (GCC) region, largely driven by non-oil growth supported by pick up in government spending, according to latest forecasts from the Institute of International Finance (IIF).
While the UAE’s Purchasing Managers’ Index (PMI) has increased in recent months, and year-on-year growth in deposits and credit is accelerated to 8.2 per cent and 4.7 per cent, respectively, in January 2019, the highest among GCC countries.
The UAE’s growth model has delivered strong economic development, as indicated by an average non-oil growth of 6.4 per cent from 2000-2015. This rapid growth has been spurred by a substantial increase in foreign labour; higher productivity levels and limited progress towards economic diversification.