The International Monetary Fund (IMF) released the last Regional Economic Outlook report for 2017 for the Gulf Cooperation Council (GCC) region, with very good news for the UAE economy. 2018 is expected to bring a 3.4% increase for the UAE, according to the IMF. Foreign investors who want to open companies in the Emirates can rely on the services provided by our company registration consultants in Dubai.
In the previous Regional Economic Outlook, the IMF had announced a 0.5 increase for the GCC economy which should be registered by the end of this year. With respect to the UAE, it has had one of the largest increases in the GDP – 1.3% up to this point of the year.
For 2018, the overall GDP in the region is expected to grow up to 2.2%, with the UAE once again a leading state thanks to its diversified economy. IMF representatives also note that the new predictions are based on the countries’ preparation for non-oil economies, even if these continue to play an important role. Also, most of the GCC states are already promoting the private sector which should start creating more jobs starting with next year.
If this year’s economy will most likely end in 2.1% increase, 2018 is expected to be a better year for the UAE, with a total GDP increase of 3.4%, while the real one is predicted to grow by 2.9%.
The UAE ministry for the economy is also optimistic about the next year, as the Dubai World Expo 2020 is quickly approaching, and by following the IMF recommendations to implicate the private non-oil sector in this project, the country will meet the projections. Moreover, the UAE is expected to pursue a knowledge and innovation-based economic increase.
The IMF also considers that the introduction of the value added tax will help the UAE and all GCC countries to diversify their economies and not rely on the oil and gas sector anymore. Also, the new tax will have a low impact on price, but will have a strong one on the Gross Domestic Product of each country.
Foreign investors interested in starting businesses in Dubai are invited to contact our local company incorporation advisors for assistance.