Firm oil prices, new ownership rules boosting confidence in UAE’s non-oil economy

Dubai: New ownership rules and firm oil prices are boosting the confidence level in non-oil economy of the United Arab Emirates, despite short-term negative impact from subsidy cuts and value-added tax (VAT), PwC Middle East said in a report on Sunday.

“Notwithstanding the impact of VAT and inflation, if oil prices remain buoyant, as seems likely, and regional investment flows are boosted by IPOs and a rise in foreign inflows, non-oil GDP growth in 2018 should be slightly stronger than in 2017 which, combined with flat (rather than reduced) oil production, should result in stronger overall growth for the year,” Richard Boxshall, Senior Economist at PwC Middle East, said in an emailed statement.