The International Monetary Fund expects Dubai’s economy to gradually recover as the government accelerates spending in preparation for the Expo 2020 event.
Dubai’s gross domestic product will likely expand 3.3 percent this year and 4.1 percent in 2019, Natalia Tamirisa, the IMF mission chief to the United Arab Emirates, said Sunday. Dubai’s GDP grew 2.8 percent in 2017, she added.
“The gradual recovery is progressing and we see a similar pattern in Abu Dhabi,” Tamirisa said at the end of a two-week visit to the UAE. The IMF expects Abu Dhabi’s non-oil economy to grow 2.3 percent in 2018 as the state ramps up spending.
Regional and federal authorities in the UAE have announced a series of measures over the past year to bolster economic growth. The steps include a plan to offer some expatriates long-term residencies, reduce government fees and easing some restrictions on full foreign ownership of businesses.
Abu Dhabi also unveiled a three-year, $13.6 billion economic stimulus program to encourage new industries and attract foreign investment.