UAE GDP to grow in 2019 as non-oil activity gains pace: NBK

Real GDP growth in the UAE is projected to move upwards over the next two years, rising from an estimated 2.2 percent in 2018 to 2.4 percent and 2.7 percent in 2019 and 2020, respectively, the National Bank of Kuwait (NBK) said in its latest report on Thursday.

"While headline growth will see only a moderate contribution from the oil sector, on account of the UAE’s participation in another round of OPEC+ production cuts in 2019 in order to balance oil supply, it will, nevertheless, benefit from elevated construction activity and government spending ahead of the Expo 2020 on the non-oil side," it added.

Additionally, real oil GDP growth is likely to rise to 0.8 percent in 2019, from an estimated 0.6 percent last year. It will accelerate further to 1 percent in 2020, as the UAE expands its oil production capacity in anticipation of higher demand.

Meanwhile, NBK said the non-oil sector is expected to remain supportive of overall growth, expanding by 3 percent and 3.4 percent in 2019 and 2020, respectively, mainly due to increasing construction activity ahead of Dubai’s Expo 2020 event.