UAE Economy: Monetary Fund Forecasts and Reviews

The International Monetary Fund has named the United Arab Emirates as one of the countries most successful in coping with the effects of the pandemic. He also emphasized that sound macroeconomic policies, a revitalization of tourism and domestic reforms aimed at stimulating economic growth, developing the private sector, improving enterprise productivity and attracting foreign investment contributed to this goal.

According to the IMF statement, economic growth will accelerate in the medium term due to efforts on structural reforms, an increase in the share of foreign investment and an increase in oil production. The budget deficit will decrease by 2022, and by 2024 it will reach a surplus.

Basically, the IMF's expectations are based on an increase in income in the UAE due to current oil prices and budget reform. The ambitious energy development strategy of the UAE until 2050 also plays an important role.

However, significant downside risks remain: a new wave of the pandemic, falling prices for petroleum products, as well as a possible drop in investment attractiveness against the backdrop of proposals from other countries in the region.