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FINANCIAL NEWS
Dubai economy to grow 4.5 percent in 2014
16 Dec 2014
(MENAFN) According to the chairman of Dubai’s Supreme Fiscal Committee, the emirate’s economy is expected to grow 4.5 percent this year, with growth rising above that level in coming years despite the current fall in oil prices, Arabian Business reported.
The committee attributed this forecasted growth to its government being keen to control government spending and avoid budget deficits, as well as its efforts to control inflation levels, which was boosted this year by surging housing rents, reaching 4.2 percent in its annual consumer figures in November, down slightly from 4.4 percent in October, which was the highest since May 2009.
Meanwhile, the UAE Ministry of Economy asserted that the country’s large fiscal reserves, which the country has built up in recent years, will allow it to keep spending on development projects in coming years despite the recent plunge in oil prices.
These reserves include the Abu Dhabi’s largest sovereign wealth fund, which is believed to have nearly USD800 billion of assets, nearly twice the UAE’s entire annual gross domestic product (GDP).
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