WHY CEOs ARE UPBEAT ABOUT THE ECONOMY

Growth will be driven by non-oil sectors; sentiment will pick up in 2nd half of year

dubai —The UAE’s efforts to diversify its economy and cut its dependence on oil is bearing fruit, and CEOs in the country are upbeat about its prospects. Growth will be driven mainly by a host of non-oil sectors like infrastructure development, tourism, trade, aviation, healthcare, insurance, real estate and manufacturing industries. This economic momentum is expected to improve job prospects and competitiveness of the emirates.

CEOs polled by Khaleej Times believe sentiment will pick up significantly in the second half of the year, resulting in increased economic activity over the next 18 months.

The International Monetary Fund agrees and expects real GDP to grow at 3.4 per cent next year — which would be a significant jump from 1.3 per cent this year. Non-oil GDP is likely to see a growth of 3.3 per cent and 3.4 per cent in 2017 and 2018, respectively. The fund notes that economic activity is expected to strengthen gradually in the coming years with oil prices recovering with the overall improving global situation. The effect of progressive and business- friendly policies is to be seen in global rankings. The UAE now ranks among the world’s top 10 most competitive economies in the world, and tops in the region. The economy is benefitting from a rebound in global trade and growth in the tourism sector.

Amid all the economic challenges, the UAE has displayed its resilience time and again. How will it play out for the rest of 2017? Join us as we gauge the sentiment of some of the top business leaders.