A report issued by the National Bank of Kuwait (NBK) showed that the UAE economy has begun the path of recovery in light of the decline in pressures caused by the pandemic, the rise in oil prices, the improvement in the performance of the tourism sector, and the government's application of more reform policies to attract skilled workers and promote foreign investments. The report also expected the GDP to rise by 1.6% in 2021, before reaching an average of 3.4% during the period 2022-2024, supported by the recovery of oil production, and the fiscal deficit is likely to shrink to 2.4 percent of GDP this year.
NBK revealed the increase in financing options with the federal government issuing debt bonds for the first time in its history, and the risks that may affect growth prospects include renewed pressures caused by the pandemic, and challenges that may face repaying the debts of government entities, especially if global financial conditions tightened suddenly.
The report indicated that the UAE economy was significantly affected by the closure of business activities and the suspension of travel and tourism, in conjunction with the weakness of the global oil market, but the recent period witnessed a period of strong growth thanks to the easing of pressures caused by the “Covid-19” pandemic, in addition to effective government support, reform policies, the recovery of the real estate sector, the rise in oil prices, and the opening of Expo 2020 also contributed to the promotion of tourism and commercial activity.
Source (Al-Rai Newspaper-Kuwait, Edited)
