Dubai: The UAE’s trade will benefit this year from rising oil prices, improved macroeconomic outlook for country’s key trading partners, and increased government spending, according to an HSBC research.
The HSBC survey, released on Wednesday, shows that 77 per cent of the UAE’s businesses project an increase in trade volumes in the next 12 months, while almost three quarters (62 per cent) expect to see a jump in service trade volumes. Dubai’s economy is expected to enjoy a strong year, as the government boosts investment ahead of Expo 2020 and the stream of incoming tourists swells.
“Although oil prices have impacted the GCC’s economies over the last year, the UAE’s push for diversification is bearing fruit. As we get closer to Expo 2020, we will see an increasing number of contracts being awarded in preparation, which in turn, increases opportunities for businesses,” said Sunil Veetil, Regional Head of Global Trade and Receivables Finance for HSBC Menat (Middle East, North Africa and Turkey).
Industry data shows infrastructure projects worth $2 trillion across the GCC, while in the UAE, $2.9 billion worth of contracts were awarded in 2017 for Expo 2020 alone.