# UAE Economy Thread



## Kutsuit

*UAE-China $10 Billion Investment Fund*

http://www.almasdarnews.com/article/uae-china-10-billion-investment-fund/












> The United Arab Emirates and China have agreed to found a $10 billion co-investment fund to strengthen trade ties with other Gulf nations and between themselves.
> 
> The UAE-China Joint Investment Cooperation Fund will be managed by Abu Dhabi’s Mubadala Development Co., China Development Bank Capital and China’s State Administration of Foreign Exchange, according to the UAE’s state-run WAM news agency.
> 
> Crown Prince of Abu Dhabi Sheikh Mohammad bin Zayed al-Nahyan stated: “The launch of this strategic, commercially driven fund represents the next stage of our partnership as we seek to work more closely in developing our economies and contributing to global growth.”
> 
> The agreement was signed by the Crown Prince on a visit to China and will focus on investing in renewable energy, infrastructure and technology.


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## Kutsuit

*UAE economy to grow 3-3.5% in 2016*

Key sectors contributing to nation's resilience, economic diversification.

http://www.khaleejtimes.com/business/economy/uae-economy-to-grow-3-35-in-2016


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## Kutsuit

*3 reasons Dubai is rising as a tech start-up hub*












> *1. Dubai is an entry point to the fast-developing markets of Asia, the Middle East and Africa.
> 
> 2. Neither companies nor individuals, including expats, pay sales or income tax, and the economy has diversified.
> 
> 3. Free trade policies give Dubai an advantage over neighbors.*


Read more: http://www.cnbc.com/2015/12/21/3-reasons-dubai-is-rising-as-a-tech-start-up-hub.html


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## luv2bebrown

^^Another "bird's eye view" of the Dubai economy. Completely lacking depth.

Are we ever going to see a more academic assessment of the economy? Probably not.


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## Kutsuit

*UAE Wants to Reduce Share of Oil Revenues to 20% of GDP*

In the future, revenue from oil and gas should not exceed around 20-25 percent of the UAE GDP, an official said.

http://sputniknews.com/business/20151229/1032446453/uae-oil-economy-gdp.html


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## Kutsuit

*Sanctions-free Iran a positive development for UAE economy*

Rising Iranian demand to boost UAE exports and service sectors

http://gulfnews.com/business/econom...ositive-development-for-uae-economy-1.1655062



> Despite the current diplomatic tensions between Iran and the GCC, the GCC countries in general and the UAE in particular is expected to benefit immensely from a sanctions-free Iran.
> 
> Analysts expect a number of non-oil sectors to benefit, including transportation and logistics, banking, tourism and trade, which should benefit particularly from any strengthening in Iranian demand.
> 
> “We expect a broad-based rise in Iran’s imports, including machinery, vehicles, construction related goods, commodities (particularly iron and steel), food, and consumer goods. Iran constituted 16.5 per cent of the UAE’s re-export market in 2014, though this was down versus 2011 (i.e. before the tightening of sanctions in 2012),” said Monica Malik, Chief Economist, Abu Dhabi Commercial Bank.
> 
> A pickup in Iranian demand and ability to move funds would also support the UAE’s service sectors, such as tourism and hospitality, as well as its real estate market. Post sanctions, the UAE is likely become the main hub for international companies looking to invest and conduct business in Iran.
> 
> Banks domiciled in countries with close ties and trade links to Iran, such as the UAE and Lebanon, but potentially also Western, Chinese and Indian banks, would likely be attracted to Iran’s diversified economy and significant trade flows, according to rating agency Moody’s.
> 
> “We anticipate increased longer-term business opportunities for Dubai banks if the Iranian economy opens up, particularly given the private sector nature of the Dubai economy and its strengths as a logistics hub,” said Khalid Howladar — senior credit officer, Moody’s.


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## Kutsuit

*Ministerial retreat soon to discuss UAE's economy beyond oil: Mohammed*

'70% of our GDP independent from oil'

http://www.emirates247.com/news/gov...onomy-beyond-oil-mohammed-2016-01-17-1.617456












> Sheikh Mohammed tweeted, "We decided to convene a ministerial retreat in coming weeks in presence of local governments and economists to discuss UAE’s economy beyond oil.”
> 
> Sheikh Mohammed added, "We will celebrate while exporting the last oil barrel as my brother His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, said, and we will embark on setting up a thorough national programme to maintain that vision to realise a sustainable economy for future generations."
> 
> Sheikh Mohammed stressed that "Today, 70 per cent of our GDP is independent from oil.
> 
> “Our goal is to have a new equation for our economy where we neither depend on oil nor market fluctuations. “We will add new economic sectors, leverage efficiency, productivity in current sectors.
> 
> “We want to prepare generations capable to lead a sustainable, balanced national economy."


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## Kutsuit




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## Kutsuit

*Khalifa University, Italian company to strengthen UAE’s naval industry*

http://gulftoday.ae/portal/76a791e3-df76-410e-b5d9-b19dd10e8eb8.aspx



> ABU DHABI: Khalifa University and Italian shipbuilders Fincantieri recently launched their new scholarship and training programme at the University’s Abu Dhabi campus. The new programme is aimed at supporting the UAE naval industry by training and educating human capital. The event was attend by Liborio Stellino, the Italian Ambassador to the UAE, as well as Khalifa University’s senior management and members of Fincantieri.


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## Kutsuit

*Mexican President calls for stronger economic ties with UAE*

http://gulftoday.ae/portal/f88a9f2e-e076-4542-9fea-b3329118d938.aspx



> DUBAI: Enrique Pena Nieto, President of Mexico, has called upon UAE investors to benefit from his country’s lucrative business environment by establishing new economic partnerships between Mexican businesses and their UAE counterparts.
> 
> Speaking at the UAE-Mexico Business Forum organised by Dubai Chamber of Commerce and Industry in partnership with the Mexico Embassy in the UAE and ProMexico, a trust fund of the Mexican Government that promotes international trade and investment, on Tuesday, president Nieto said the Mexican government was keen to build on the long-time ties enjoyed by the two countries.
> 
> ''The Government of Mexico is committed to enhancing co-operation between our business communities in every possible way,'' he said, adding that this Forum, which was attended by over 100, is evidence of this commitment.
> 
> He pointed out at the investment opportunities for UAE companies in various sectors notably education, trade and industry, financial services and energy, in his country which has adopted major reforms adding that his country signed joint trade agreements with 11 countries and therefore the export to Mexico allows opportunities in about 46 different markets and access to 140 million consumers.


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## Kutsuit

*UAE to set up Chinese yuan clearing centre*

http://www.reuters.com/article/emirates-yuan-clearing-idUSL8N14F0AF20151226



> Dec 26 The United Arab Emirates plans to establish a centre for clearing transactions in the yuan, the central bank said on Saturday, becoming the second country in the Middle East to do so as China's economic ties with the region boom.
> 
> Qatar opened the region's first such clearing centre, which can handle all stages of a currency transaction, in April.
> 
> The announcement by the UAE, the second largest Arab economy after Saudi Arabia, follows the International Monetary Fund's decision last month to admit the yuan into its Special Drawing Rights basket. This could help encourage other countries to use the currency for reserves, trade and investment.
> 
> Sheikh Mohammed bin Zayed al-Nahayan, the Crown Prince of Abu Dhabi, signed a memorandum of understanding for the planned UAE clearing centre when he visited China earlier this month, the central bank said in a statement.


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## Kutsuit

*A head start towards a truly diversified economy*

http://www.thenational.ae/opinion/comment/a-head-start-towards-a-truly-diversified-economy












> Now the situation is markedly different, with prices lower than at any time since 2004 and with most analysts agreeing that a continued slide to $20 per barrel or even lower may well be on the cards. Times are going to get tougher.
> 
> It's timely, then, that Sheikh Mohammed bin Rashid, the Vice President and Prime Minister and Ruler of Dubai, has announced that a ministerial retreat is to be held within the next few weeks to look at ways in which the country's economy can be further diversified away from the oil and gas sector.
> 
> Only in this way can the long-term objective of a sustainable and balanced economy be achieved.
> 
> Announcing the plan, Sheikh Mohammed noted that as of now, oil provides 70 per cent of our GDP.
> 
> “Our goal is to have a new equation for our economy where we depend neither on oil nor on market fluctuations,” he said.
> 
> That goal is laudable, although it's going to take a lot of imagination, innovation and determination to achieve it.
> 
> It's appropriate to recall, though, that the economy has long since moved on from the stage when it was largely dependent on oil and gas and that, therefore, it is insulated to some extent against market fluctuations or a lengthy period of low prices.


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## m-man

*UAE to cut remaining energy subsidies, minister says*



> DAVOS // The UAE will extend its economic diversification strategy by removing further subsidies on energy, Suhail Al Mazrouei, the UAE’s Energy Minister, told the World Economic Forum in Davos.
> 
> In particular, Mr Al Mazrouei said he was planning to scrap subsidies on electricity and on gas sold to power generators.
> 
> “We need to think about major reforms to make the budget less dependent on the oil price, and to build an economy that is vibrant but also taking advantage of the lower oil prices,” he said.
> 
> “We saw the opportunity to do the right thing and to get people to pay the right price for energy. We have done it with petrol and diesel, next is electricity. We must remove remaining subsidies from electricity generation. Most of it is not subsidised, the majority of the tariff is fair. But there are old gas contracts that are not realistic and do not reflect fair pricing,” he added.
> 
> He gave no details on the timing of the subsidy removals.
> 
> His comments came in a wider debate about the pace of economic reform in Arab countries, dominated by concerns from oil-producing countries about the effect of falling oil prices on regional budgets.
> 
> Mr Al Mazrouei predicted that national populations could be “persuaded” to accept and embrace economic reform even when it might affect their standard of living by increasing consumer prices. “If you have a good story and tell it to local people they will be convinced. The majority of the population is young and they’re different from past generations.
> 
> “The economy is still growing but the challenging thing is to get more efficiency. We are redirecting the subsidy as an opportunity to invest in other parts of the economy, like building schools and hospitals. It’s a convincing story. It’s not so difficult to understand,” he said.
> 
> Mr Al Mazrouei was asked if a price range of between US$30 and $40 per barrel was “the new normal” for the oil industry and if there should be a new Opec policy on production levels.
> 
> “Cartelment is unfair and unethical and has the result of bringing more expensive production to the market. But this price is not sustainable. It is very low and will not last. You have to remember that 60 to 70 per cent of oil production comes from outside Opec, and for example North Sea oil costs $50 to $60 per barrel to produce. I think we will see sustainability of a fair price for the producers and consumers by the end of this year or early next,” he said.
> 
> Mr Al Mazrouei pointed out that the low oil price had led to the cancellation of $400 billion of energy industry investment.
> 
> “This planned investment has gone. We will have a problem in two years’ time. You cannot produce oil out of air,” he said.
> 
> The new era of energy prices was one of the major themes of the WEF’s annual meeting.
> 
> On a separate panel, Khalid Al Falih, the chairman of Saudi Aramco, the region’s biggest producer, said that his company and Saudi Arabia as a country had the capacity to withstand low oil prices “for a long time”.
> 
> “We have the most resilient capacity to take whatever the market serves. If prices stay low we will be able to withstand it for a long time. But obviously we don’t hope for it,” he said. He called the current price level “irrational”.
> 
> Mr Al Falih confirmed that Aramco was studying the possibility of selling some of its business in an initial public offering but declined to give details.
> 
> Representatives from other oil-producing countries were critical of Opec policy.
> 
> Emmanuel Kachikwu, the oil minister for Opec member Nigeria, called for an emergency meeting of Opec to discuss how to increase prices, but Ilham Aliyev, the president of Azerbaijan, which has suffered economic and financial disruption, as well as public protests because of falling oil revenue, advised against calling any more Opec meetings.
> 
> “Every time Opec meets the price of oil goes down, so it’s better not to have any more special meetings,” he said.


http://www.thenational.ae/business/economy/uae-to-cut-remaining-energy-subsidies-minister-says


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## Kutsuit

*UAE, UK seek to widen scope of trade cooperation*

http://www.khaleejtimes.com/business/local/uae-uk-seek-to-widen-scope-of-trade-cooperation












> *UAE Minister of Economy discusses ways to boost UK relations with London Mayor Lord Mountevans.*
> 
> Sultan bin Saeed Al Mansouri, UAE Minister of Economy, and Lord Mountevans, the Lord Mayor of the City of London, discussed the excellent relations binding the UAE and Britain and ways of boosting them to better serve bilateral interests.


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## Kutsuit

*UAE Economy Minister and Australian Minister discuss cooperation*

The two sides hailed the open atmosphere between the two countries

http://gulfnews.com/business/econom...ralian-minister-discuss-cooperation-1.1660627



> Dubai: Sultan Bin Saeed Al Mansouri, Minister of Economy, and Richard Colbeck, Australian Minister for Tourism and International Education and Minister Assisting the Minister for Trade and Investment, have discussed means of boosting economic and trade cooperation between the UAE and Australia.
> 
> During the meeting, which was attended by the Australian Minister’s accompanying delegation, they discussed the outstanding relations between the two countries in various economic fields and ways of enhancing them especially with regard to innovation and scientific research fields.


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## Kutsuit

*UAE economy minister meets Canada’s trade minister*

The ministers agreed to hold the first UAE-Canada Joint Economic Committee meeting in Ottawa next September

http://gulfnews.com/business/economy/uae-economy-minister-meets-canada-s-trade-minister-1.1659018



> Dubai: The UAE Minister of Economy Sultan Bin Saeed Al Mansouri has met with Canada’s Federal Minister of International Trade Christina Alexandra Freeland at Davos, according to a government statement on Sunday.
> 
> The two ministers discussed strengthening ties between their respective countries, at a meeting on the sidelines of the World Economic Forum.
> 
> In the meeting, the ministers agreed to hold the first UAE-Canada Joint Economic Committee meeting in Ottawa next September.


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## Kutsuit

*UAE leads as logistics friendly emerging economy*

http://www.arabiansupplychain.com/article-12198-uae-leads-as-logistics-friendly-emerging-economy/












> The UAE contains some of the best business conditions for growth among all emerging markets, according to the 2016 Agility Emerging Markets Logistics Index.
> 
> The seventh edition of the annual index ranks 45 leading emerging economies based on their size, business conditions, infrastructure and other factors that make them attractive to the logistics industry.





> The UAE ranks ahead of much larger economies, finishing second overall behind only China among the countries in the 2016 Index.
> 
> China’s economy is 25 times larger than UAE’s; India’s is five times the size and Brazil’s is six times larger.
> 
> Among the GCC countries in the Index, UAE, Qatar and Oman are the most business friendly, based on a combination of market access, risk, regulation, foreign investment, urbanisation and wealth distribution.
> 
> Other Gulf states that ranked near the top in business conditions were Saudi Arabia (5); Kuwait (9) and Bahrain (11).
> 
> The UAE leads all 45 countries in “connectedness,” meaning it has the best combination of infrastructure, transport connections, and customs and border administration.
> 
> The nation’s geographic location and business friendly environment has made it a strategic transit hub linking the east and the west.


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## Kutsuit

*UAE-India trade may touch $100 billion by 2020*

http://www.khaleejtimes.com/business/economy/uae-india-trade-may-touch-100-billion-by-2020












> *As India is forecast to become the UAE's top import and export destination by 2020, policy changes are expected from both sides that would have a positive impact on trade relations.*
> 
> Trade between the UAE and India could be valued around $100 billion in the next five years, given the target of 60 per cent growth by 2020. Currently, bilateral trade is worth $60 billion.
> 
> Trade between the two countries is expected to rebound in 2016 and 2017 despite declines in trade values in the last two years, according to Marmore Mena Intelligence, a research firm.


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## Kutsuit

*UAE news in review 2015: Ties with China and South Korea strengthened*

http://www.thenational.ae/uae/gover...-ties-with-china-and-south-korea-strengthened












> ABU DHABI // The UAE has strengthened its relations with Asia over the past year, namely with South Korea and China.
> 
> With the recent visit of Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to Beijing, the relationship with China is expected to further contribute to the UAE’s economic development.
> 
> It is hoped the visit will open investment opportunities in areas including renewable energy, telecommunications, infrastructure, rail, aerospace and finance.
> 
> A new trade link, the China-Pakistan Economic Corridor, is also expected to benefit the UAE and the region over the next five to 10 years.
> 
> With a focus on diversifying its economy and energy sources to plan for a future without oil, the UAE has intensified its work with other countries in the nuclear field.
> 
> Australia will soon provide the UAE with uranium for its nuclear power plant after it finalised an agreement to expand its global uranium exports with the country.
> 
> Russia and the UAE also signed a 15-year commercial contract this year to make it one of the suppliers of enriched uranium needed for the nuclear power plant in Barakah in the Western Region.


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## saeed

Kutsuit said:


>


To correct the info above: UAE nominal GDP is around $400 Billion not $1.47 Trillion. They might be referring to the amount in UAE dhs not $
( Exchange rate is : 1$= 3.67 Dhs)


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## Kutsuit

*1. American partnerships will help drive the UAE economy forward*

http://www.thenational.ae/opinion/c...ships-will-help-drive-the-uae-economy-forward

*2. UAE non-oil business growth picks up during May as employment expands*

http://www.thenational.ae/business/...wth-picks-up-during-may-as-employment-expands


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## Kutsuit

*GCC economic growth forecast to strengthen from 2018*

New report says the UAE and Qatar will outperform the rest of the Gulf region over next 5 years

http://www.arabianbusiness.com/poli...nomic-growth-forecast-to-strengthen-from-2018



> Economic growth in the GCC will strengthen from 2018 onwards, with the UAE and Qatar outperforming the rest of the region. according to new research.
> 
> Analysts BMI Research said the factors that have weighed on expansion this year - hydrocarbon production cuts and lower-for-longer oil prices - will ease in 2018, boosting government revenues and improving consumer and investor confidence across the region.
> 
> It added that Qatar and the UAE will be the growth outperformers over the next five years.
> 
> BMI said it expects economic growth to pick up in all Gulf Cooperation Council (GCC) member states over the medium term (2018-2021).
> 
> "We forecast an annual aggregate average of 2.8 percent real GDP expansion over the period - a recovery from the 1.5 percent we forecast in 2017," it said in the research note.
> 
> It added that growth will underperform this year (from an average 2.5 percent in 2016) - owing to the OPEC, non-OPEC agreement to curb oil production, and lower oil prices than we initially anticipated.
> 
> The UAE and Qatar will outperform the region over the years ahead, as strong fiscal positions enable their governments to invest heavily into diversification and infrastructure development programmes. While Bahraini growth rates are likely to also remain robust, the country is exceptionally vulnerable to external shocks, given its wide budget deficits, high debt and reliance on Gulf funding, BMI noted.
> 
> Gradually rising global hydrocarbon prices will be a key driver of growth in the GCC over the years ahead, it added, as hydrocarbons account for over half of government revenue in all member states, and prices therefore have a major impact on public spending.
> 
> However, higher hydrocarbon prices will be insufficient to fully mitigate the effects of hydrocarbon production cuts for most Arab Gulf economies in 2017. The OPEC, non-OPEC agreement has been extended to March 2018, as its effect on the drawdown of global oil stockpiles has been slow to materialise, and this will lead to flat or declining oil production growth across the GCC in the near term.
> 
> BMI said this trend is taking its toll on Saudi Arabia, Kuwait and Oman, in particular, for which are forecast to see real GDP expansions slow to 0.0 percent, 0.3 percent and 1.2 percent respectively in 2017, from 1.7 percent, 1.9 percent and 3.1 percent in 2016.
> 
> "Over the medium term, however, we forecast economic growth to accelerate across the region, as hydrocarbon prices pick up further and curbs on oil production ease. While growth in hydrocarbon production will remain relatively slow throughout the next decade, higher prices will boost confidence and
> government investment into the development of non-hydrocarbon sectors in all GCC states," BMI added.


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*UAE retains title as most competitive economy in Arab world*

World Economic Forum ranks the UAE 17th in latest edition of Global Competitiveness Report

http://www.arabianbusiness.com/poli...tle-as-most-competitive-economy-in-arab-world



> The UAE has been named the most competitive country in the Arab world in a new global report published by the World Economic Forum.
> 
> Its Global Competitiveness Report 2017-2018 - an annual assessment of the factors driving countries’ productivity and prosperity - ranked the UAE 17th on the list which was topped by Switzerland for the ninth consecutive year, narrowly ahead of the United States and Singapore.





> Elsewhere in the Gulf, Qatar was ranked 25th, Saudi Arabia (30th), Bahrain (44th), Kuwait (52nd) and Oman (62nd).
> 
> The report said the Middle East and North Africa improves its average performance this year, despite further deterioration in the macroeconomic environment in some countries.
> 
> Low oil and gas prices are forcing the region to implement reforms to boost diversification, and heavy investments in digital and technological infrastructure have allowed major improvements in technological readiness.


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## akshay18

Tourism and Oil, two of the most important reasons for the growth of UAE economy. Considering the fact that it is the fastest developing country, other countries also investing in the same.


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