(MENAFN) According to a report by Kuwait Financial Centre Markaz, the economic outlook for the UAE looks positive with Dubai expected to maintain its growth as it continues investing on the major infrastructure projects and preparations to host the World Expo in 2020 while the continuation of fiscal expansion policy, particularly in Abu Dhabi, will help the growth momentum as well, Khaleej Times reported.
The report said that the 31 percent growth recoded in corporate earnings for the UAE during the January-September period of 2014 as compared with the corresponding period of last year is another sign that growth in the economy will maintain its momentum.
"Such strong growth could be ascribed to higher earnings in banking, telecom and real estate sectors. Bank earnings were boosted by a strong rise in non-interest income and significant decline in loan loss provisions. Asset quality metrics have improved due to recoveries, restructuring and consistent loan growth. The UAE witnessed the second highest turnover ratio in the region," Markaz analysts said in a regional market outlook.
Markaz added that in terms of sector, it remains positive on banks and financial services, neutral on telecom and negative on real estate as they believe growth from a higher base would be hard to sustain.
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