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
 Jun 26 2016 - Saudi Arabia chooses financial planners for USD10bn bondMENAFN
(MENAFN) Saudi Arabia has picked Citigroup, HSBC and JP Morgan to arrange its new USD10 billion bond, local financial sources reported.Banks had pitched for roles on the transaction earlier this ...

 Jun 26 2016 - Dubai's new industrial vision to generate USD44bMENAFN
(MENAFN) Dubai has announced its new Industrial Strategy, which will oversee 75 initiatives to add USD44 billion to the emirate's economy.The plan has been approved by Vice President and Prime ...

 Jun 26 2016 - Turkey Anel grasps USD66m in DohaMENAFN
(MENAFN) Turkish-based Anel Mepa has won an USD66.5 million contract for the Red Line of Doha Metro scheme, a report said.In detail, the agreement includes building automation and management and ...

 Jun 26 2016 - Oman engineering college kick off solar projectMENAFN
(MENAFN) The Sultan Qaboos University (SQU) College of Engineering said it's currently working on a new solar project.In detail, the USD559 thousand project is expected to generate electricity with ...

 Jun 26 2016 - Damac awarded USD817m deals in H1MENAFN
(MENAFN) Damac Properties, a UAE firm, said it had awarded 25 construction and consultancy contracts worth USD817 million during the first half of this year.In detail, the leading luxury real estate ...

 Jun 26 2016 - Saudi, UAE say no big financial effect from BrexitMENAFN
(MENAFN) Saudi Arabia and UAE said that they did not expect remarkable effect to their financial institutions after Britain's vote to leave the European Union."Kingdom had already made some ...

 Jun 26 2016 - UAE Embassy in distributes Ramadan aid to Muslims in VietnamEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) HANOI, 26th June, 2016 (WAM) -- The UAE Embassy in Vietnam has overseen the distribution of food aid to 150 underprivileged Muslim families in the Nghia ...

 Jun 26 2016 - Qatar Petroleum announces integration of TasweeqEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DOHA, 26th June, 2016 (WAM) -- Qatar Petroleum, QP, the state owned petroleum company in Qatar, has announced the integration of Qatar International ...

 Jun 26 2016 - UAE- Ajman Chamber organises 4th diplomatic forum and discusses economic cooperationEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) AJMAN, 26th June, 2016 (WAM) -- The Ajman Chamber of Commerce and Industry, ACCI, organised the 4th edition of its annual Ramadan Diplomatic Forum aimed at ...

 Jun 26 2016 - UAE Space Agency and Lockheed Martin partner to train next generation of UAE national space talentEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI, 26th June, 2016 (WAM) -- The UAE Space Agency has signed a Memorandum of Understanding, MoU, with Global technology leader, Lockheed Martin, to ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

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

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

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