uae's economy will grow again in 2010, according to 7days.ae
the UAE, Saudi Arabia and Kuwait economies are set to resume growth in
2010, after contracting this year amid an oil price slump, Banc of America Securities-Merrill Lynch said yesterday
The UAE’s gross domestic product (GDP) will grow by 1.9 per cent next year, while Saudi
Arabia’s GDP will add 2.8 per cent and Kuwait’s will see a two per cent
rise. This year’s decline in GDP for the three largest economies in the
region follows a combined Gulf growth rate of almost 43 per cent in the
last six years, the investment firm said in a research note.
“The credit crunch and deepening global recession in the fourth quarter have
brought about a sea change in the underlying emerging markets macro
story,” the firm said. “Against this ‘survival of the fittest’ backdrop, focus has shifted to fundamentals, financing needs and the ability to smooth the sharp global downturn by running counter-cyclical policies.” If oil prices average $45 a barrel this year, all Gulf
economies except Kuwait will post budget deficits, the bank said. “Gulf governments have saved 70 per cent of the oil windfall since 2002, giving them deep pockets to support spending plans if need be,” the bank said.
