The Institute of Chartered Accountants in England and Wales (ICAEW) predicted in its latest economic outlook that the UAE's economic activity will accelerate to 2.2% in 2019, rising from an estimated 1.7% in 2018 and backed by a recovery in the non-oil sector activity, the increased public spending at federal and local levels, in addition to the high investment ahead of the highly anticipated Expo 2020, and the continued economic recovery across the region.
According to the report, oil production in the UAE recovered in 2018 to ease the situation in the world oil markets, especially after the United States imposed sanctions on the Iranian oil exports. The production levels are expected to rise to an average of 3.07 million bpd this year, up from an average of 3 million bpd in 2018, reflecting the UAE's continued investment to boost its production capacity.
The oil sector is expected to grow by about 2% in 2019, marking the fastest growth rate for the sector in three years. But the higher production will be affected by lower oil prices in 2019. In contrast, the UAE's non-oil sector is expected to accelerate from an estimated 1.3 percent in 2018 to 2.1 percent in 2019.
Source: (Al Khaleej newspaper, Edited)
