Obvious signs that the UAE economy is turning

You do not need to look too hard, but there are definite signs that the country's economy is about to experience something big after what can be described as a few gloomy quarters. As Koshy Mathai of the International Monetary Fund said last week, "The [UAE] the economy may now be at a turning point, supported by public spending. "The statistical and anecdotal evidence shows that the vertigo of growth is manifesting itself in various sectors of the economy.

The latest United Arab Emirates PMI (Purchasing Managers Index, indicator of the economic health of the country's non-oil sectors) reached its highest level in 16 months, inflation is well under control and the Business confidence is at its highest level in seven years. The monthly data shared under the Emirates NBD PMI program shows a clear improvement in activity, even though employment growth in April remains marginal. In addition, world oil prices are expected to average more than $ 70 per barrel for the remainder of the year, providing the flexibility to further stimulate public spending on infrastructure development.

With Expo 2020 on the horizon, the construction sector has seen remarkable activity in recent times and new residential real estate is tracking the evolution of infrastructure and commercial construction. Benchmark for real estate in Dubai, Emaar Properties has just announced an impressive 53% increase in real estate sales in the first quarter of 2019 and a 7.2% increase in net profits for the same period thanks sales more than doubled to international investors.

The new relaxed visa regime has been implemented and the first long-term visas have already been issued. The positive aspects of these will certainly begin to manifest sooner rather than later.

According to the World Travel and Tourism Council, the travel sector in the UAE continues to grow. The Abu Dhabi stock index is up 7.4% while the Dubai stock index is up 8.8% since the beginning of the year. While the government announced a series of major projects in recent weeks, badysts predict that 2019 will be a year of sustainable growth.

I wish you and your family Ramadan Mubarak from the KT team. May the blessed essence of this auspicious month bless you and your family with happiness and friendliness.

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