Experts predict strong economic growth for Emirates by 2022
The UAE is one of the countries that is investing the most in its businesses and resources, and this is reflected in its economic data. Experts say that the Gulf country's economy is set to experience unprecedented growth this year. The economy is expected to grow by 5% to 6% more than what it is established today.
According to the Emirati Finance Minister, Abdulla Bin Touq Al Marri, if the same rate of steady growth is maintained, the country could double its GDP and economy by 2031. "That's what I hope, we are very ambitious, very positive. .... We want to double our economy by 2021," he confirmed in an interview with Reuters news agency.
The good economic data is due to a series of projects that have had a positive impact on the country's wealth. Among them, the organisation and hosting of EXPO 2020 in the city of Dubai stands out, which in addition to highlighting to the world the country's good organisation of events such as this, as it is the first to be organised in a country in the MENA region (North Africa and the Middle East), has boosted tourism and has managed to attract a large proportion of the world's tourists.
Another key factor in understanding the boost to the national economy is the nation's non-oil economy. This has benefited from public spending and credit growth that has accelerated the nation's pace. Projects to reform and improve the business environment, such as shorter working hours, shorter working days, more resources for SMEs, massive support for the private sector, etc., are some of the measures that have been implemented to boost the economy.
On the other hand, the oil and gas sector continues to be one of the fundamental pillars of the country and one on which the nation is heavily reliant. In recent times, projects have been approved in these industries related to climate change and which represent a complete modernisation of one of the most polluting and environmentally damaging industries in the world.
The minister also believes that when the problems caused by the coronavirus pandemic are solved and a return to full normality, the economic situation will start to pick up more quickly. "The whole world is recovering and I think we are in a recovery phase after the pandemic, but predicting growth also this year is a challenge," he told Reuters.
In his interview with the news agency he was also asked about the Ukraine-Russia war and how it is affecting the world economy following the high prices Moscow is imposing on Russian oil and gas. Another question referred to Russian citizens who are interested in investing in the UAE, to which the minister replied that his country abides by international law regarding this issue. "We are open to those who are not against international law," he said in the interview.
Since the outbreak of the war and the currency blockade, Russian oligarchs have been fleeing to the Emirates, especially to the city of Dubai, to continue to set up their property purchase businesses and not lose their global assets. Since 24 February, the US, the EU and the UK have severely punished Vladimir Putin and his inner circle with harsh financial sanctions that are forcing Russia's elite to relocate their business operations to the Gulf state to avoid bankrupting their own economy.