Posted by Neil King
The International Monetary Fund (IMF) is set to raise its economic growth forecasts for Dubai and the UAE following various government investments and reforms, it has been revealed.
Speaking to Bloomberg, IMF Middle East director Masood Ahmed confirmed that growth in the UAE will be better than the current forecast of 1.3 per cent and the 0.4 per cent contraction for Dubai this year, though he declined to give the new figures which are due in four weeks time.
Mr Ahmed suggested the debt restructuring plan for Dubai World, which announced on September 10th that it had received the approval of 99 per cent of creditors for the plan, had been an important factor in the revised forecast.
"We see this revision coming about in part because of the removal of uncertainty over the debt issues," he said. "Growth of the services sector in Dubai, which mirrors global growth and growth in Asia, and continued spending by the Abu Dhabi government are also factors."