Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

UAE economy to gain steam in 2014  Join our daily free Newsletter

MENAFN - Khaleej Times - 04/12/2013
No. of Ratings : 0
Add to Mixx!

(MENAFN - Khaleej Times) The UAE economy is poised to gain new momentum in 2014 with three key sectors - including huge non-oil sector investments, the buoyant trade and services sector, and the booming tourism industry - primarily driving the upswing in the country's gross domestic product to 4.5 per cent from 4.4 per cent in 2013, Standard Chartered said on Tuesday.

The bank, predicting a better 2014 across the world with the global economy picking up steam to rise to 3.5 per cent from 2.7 this year, and "inflation staying benign", estimated that non-oil project spending in Abu Dhabi would reach 34 billion in 2014 in line with the emirate's long-term development and diversification goals.

The second driver is Dubai's core trade and services sector that would continue benefiting from strong regional dynamics, "as bulging GCC fiscal surpluses drive long-term infrastructure and diversification projects", Standard Chartered said in the Global Focus 2014 report "Rising East, emerging West". In 2013, Dubai's non-oil trade, which was up 16 per cent (184 billion) in the first half, will end up almost 14-16 per cent higher than in 2012. "For 2014 we expect overall trade to grow 12-15 per cent. Driving this growth will be Dubai's position as a gateway to 55 per cent of trade inflows to the GCC through its ports," Standard Chartered said. The bank expects investment levels in the region to remain strong, driving demand for capital goods imports and benefiting the emirate's logistics and trade sectors.

"The growth in trade across different geographies is another driver; data from the Dubai Chamber of Commerce and Industry shows that trade with Africa in the past five years increased from six per cent as a share of Dubai trade to 10 per cent. This represents a move from 10 billion to close to 30 billion in trade, which makes Africa Dubai's fastest-growing market."

Dubai's tourism sector, the third key growth driver, is likely to have another strong year. "Hotel occupancy rates and tourist inflows to Dubai are very strong. In the first half of 2013, the number of tourists in Dubai reached 5.5 million, an 11 per cent increase over 2012. Dubai's hotels reported 7.9 million visitors in the first nine months of 2013, up 9.8 per cent versus the same period in 2012."

Dubai's hotel occupancy rates reached 81 per cent from 75.5 per cent in the same period last year. Dubai has total 81,492 hotel rooms as of the first half 2013, which means the growth in occupancy is impressive: room stock in Dubai was almost 43,419 in 2009, when occupancy rates were around 68.8 per cent.

Bank economists believe inflation as one of the challenges that should be on policy makers' radar in 2014. "While a spike to the levels of 2006-08 is very unlikely, we believe inflation will begin to rise in 2014. In Dubai, residential prices rose by 38 per cent for apartments and 24 per cent for villas, with rents up by 20 per cent and 17 per cent, respectively, in 2013 first half."

In Abu Dhabi, the property market will benefit from increased demand as project investment drives jobs, further supported by directives that will bring more Abu Dhabi government employees back to the emirate. Overall inflation remains relatively low, with inflation as of September 2013 up 1.26 per cent compared with the same month in 2012.

"We expect inflation in the UAE to pick up to around 4.2 per cent in 2014 as the housing component [39 per cent of the inflation basket] better reflects market conditions."

The bank believes that the hydrocarbon sector is unlikely to directly contribute to real GDP growth in 2014."


Khaleej Times

  MENA News Headlines
 Oct 13 2015 - France signs deals worth $10 bn with Saudi ArabiaAFP
(MENAFN - AFP) France on Tuesday announced a series of deals worth 10 billion euros ($11.4 billion) with Saudi Arabia, reinforcing growing ties between the two countries. Prime Minister Manuel Valls ...

 Oct 13 2015 - 27 Palestinians killed since beginning of OctoberJordan News Agency
(MENAFN - Jordan News Agency) The number of Palestinians who have been killed since the beginning of October due to confrontations with Israeli occupation forces in the West Bank, occupied Jerusalem ...

 Oct 13 2015 - Jordan- Social development minister, Saudi counterpart discuss cooperationJordan News Agency
(MENAFN - Jordan News Agency) Minister of Social Development Reem Abu Hassan on Tuesday, discussed with Saudi Minister of Social Affairs Majid Al Qasabi, means to boost social cooperation between the ...

 Oct 13 2015 - Two Israelis killed, 16 others injured in occupied JerusalemJordan News Agency
(MENAFN - Jordan News Agency) An Israeli soldier was killed and 16 others were injured in a shooting an stabbing attack carried out by two Palestinians inside an Israeli bus in Jabel Mukaber ...

 Oct 13 2015 - UAE- Nedaa to feature latest technological innovations in LTE mobile broadband communications at GITEXEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DUBAI 13th October 2015 (WAM) -- Nedaa the Dubai Government's professional communication corporation has announced its participation in the 35th edition of ...

 Oct 13 2015 - UAE- RAK Ruler receives Secretary General of the Supreme Council of the UnionEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) RAS AL-KHAIMAH 13th October 2015 (WAM) -- H.H. Sheikh Saud bin Saqr Al Qasimi Supreme Council Member and Ruler of Ras al-Khaimah today received Hamad Abdul ...

 Oct 13 2015 - Mohammed bin Rashid pays his respects on death of martyr Sultan Al MazrouieEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) KALBA 13th October 2015 (WAM) -- Vice President and Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum has offered ...

 Oct 13 2015 - UAE- Eye on Earth Summit calls for practical action to support 2030 sustainable development agendaEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 13th October 2015 (WAM) -- The second Eye on Earth Summit has concluded with a commitment from delegates to implement a number of mechanisms ...

 Oct 13 2015 - Yemeni Minister of Human Rights: UAE plays a major role in restoring stability in YemenEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) CAIRO 13th October 2015 (WAM) --Yemen's Minister of Human Rights Izz Al-Din Al-Asbahi has praised the leading role played by the United Arab Emirates in ...

 Oct 13 2015 - UAE- EGA sponsors Montessori Model United Nations conference to empower tomorrow's leadersEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 13th October 2015 (WAM) -- As part of its commitment to supporting education initiatives in the UAE Emirates Global Aluminium EGA sponsored 150 ...




Click to Apply


Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help