Widening Horizons of the UAE’s Economic Prosperity
- 27 August 2013
UAE newspaper Al Bayan recently conducted a survey of business leaders working under the umbrella of Dubai Chamber of Commerce and Industry. The survey was meant to understand their expectation of the business conditions and performance of the UAE economy during the next five years. Participants agreed that the year 2012 marked the beginning of a strong and sustainable recovery of the UAE’s economy and the beginning of a new era of prosperity that will extend for years. This process, they believed, will improve next year during which the economy is expected to grow by about 6 percent and will become sustainable in years to come.
These results add to the confidence of the UAE’s financial situation as well as for sectors of the real economy. These results are of particular significance due to several reasons. They are consistent with projections of many international institutions – including the Economist Intelligence Unit (EIU) – which estimate that the UAE’s economy will grow this year by about 5.6 percent, and will rise to about 6 percent next year. These projections are very similar to the International Monetary Fund forecasts, which lend it even greater credibility.
The results of the survey indicate that investors feel confident about the UAE’s investment climate and are optimistic about the future of their investments in the UAE market. They are the ones who monitor the business operations of their organizations on a daily basis and are familiar with the strong fundamentals that drive economic activities in the UAE. Their optimism suggests that the UAE’s economy is strong and dynamic and promises to further expand and prosper in the future.
Moreover, strong performance of the UAE’s economy during this phase of development is built on its own capabilities. This performance is commendable because it comes at a time when the global economy is passing through a period of high uncertainty, there has been a subsequent decline in international demand for exports and prices have declined. This highlights the ability of the UAE’s economy to maintain positive performance without succumbing to external pressures, which an important indicator of sustainable growth.
Participants of the survey confirmed that policies pursued by the UAE are extremely efficient and consistently meet their objectives. They agreed that policies implemented by the UAE in recent years have helped the country stage a stronger recovery than expected and has returned it to the path of growth ahead of many economies. Participants attributed this to the UAE’s wise leadership – under President His Highness Sheikh Khalifa bin Zayed Al Nahyan (may God protect him). They said his strong and dynamic leadership has given a comprehensive development vision, which has given strength to the nation’s economy.