Further growth is expected in the UAE and in the property market in particular as the International Monetary Fund sets its forecast at 4.5%
- Reuters and IMF analysts put UAE growth forecasts at between 4.3 and 4.5% respectively
- Growth is particularly visible in the real estate market as recovery continues apace
- Expo 2020 and series of megaprojects helping to drive growth
Growth forecasts for the United Arab Emirates (UAE) are positive all round, with predictions for growth reaching as high as 4.5% in 2014.
The International Monetary Fund (IMF) has hiked its 2014 economic growth forecast for the UAE up to 4.5%, while analysts polled by Reuters this month expect 4.3% growth between 2013 and 2015.
Growth is particularly conspicuous in the Dubai property market, which has been enjoying a steady recovery in recent months.
Harald Finger, IMF’s Mission Chief, said: “The real estate sector in particular has seen a steep recovery, with prices in the Dubai residential real estate market having increased rapidly in selected areas.”
Buying sprees and a flurry of activity in the stock market following hefty government investment in real estate projects have seen house prices in Dubai rise by more than 20% over the past year.
IMF stated that Dubai’s winning bid to host Expo 2020 and a string of megaprojects will drive growth – although financing and the pace of execution remain uncertain.
Despite Dubai’s position as the world’s number three oil exporter, the organisation added that oil-fuelled growth was likely to be limited due to abundant global supply.