UAE’s GDP set to increase 2.5 per cent to Dhs1.5 trillion in 2020

The UAE’s Gross Domestic Product (GDP) in constant prices, is projected to grow 2.5 per cent year-on-year to Dhs1.501 trillion in 2020, said Obaid bin Humaid Al Tayer, minister of state for financial affairs, and chairman of the Federal Tax Authority, reported news agency WAM.

UAE’s GDP was recorded at Dhs1.464 trillion for 2019, and for 2018 its GDP stood at Dhs1.442 trillion.

The central bank said in February that the growth in the 2019 GDP figures can be attributed to growth in both nonhydrocarbon sector and the hydrocarbon sectors.

Read: UAE’s economy grew 2.9% in 2019 – report

The hydrocarbon sector grew mainly due to the two-digit growth in condensates and natural gas production.

The third quarter of 2019 benefitted from a 3.3 per cent year-on-year increase in government spending.

Employment in the private sector also increased 2 per cent in the fourth quarter of 2019, the highest growth in the last seven quarters, with 38,765 net new jobs created in Q4 2019.

The minister made the statement about UAE’s projected 2020 GDP figures in reply to a question from a member of the Federal National Council.

On the impact of the 5 per cent Value Added Tax (VAT) which was introduced in January 2018 on the national economy, the minister said that it was a relatively short period to have enough data to measure its economic impact.

“The 2019 data is not yet out, and all we have is data for 2018. We should bear in mind the global factors when the UAE implemented the VAT, such as the decline in oil prices across the world, slow growth of the global economy, increasing trade protectionism and economic sanctions slapped on some countries in the region; all these factors have a close connection with the GDP,” he said.