IMF gives UAE positive economic forecast

24/05/2011 - Dubai Investment News Posted by Bob Brunskill
IMF gives UAE positive economic forecast

High oil prices and strong demand from traditional trading partners are ensuring that the UAE continues to see its economic position strengthen.This is according to a report by the International Monetary Fund (IMF), which noted that the recovery is taking place despite the emirate's position in an uncertain regional environment."Non-hydrocarbon GDP growth is projected to accelerate from 2.1 per cent in 2010 to 3.3 per cent in 2011," IMF said.However, despite a more positive outlook, there remains issues which could hamper the nation's overall recovery.The real estate overhang and short-term refinancing needs from overleveraged government-related entities continue to weigh on the near-term outlook.In spite of this, IMF added that the successful restructuring of Dubai World's debt has improved market confidence.Dr Nasser Saidi, chief economist of Dubai International Financial Centre, added: "Dubai has become in a very short time one of the pivotal trading, business and tourism hubs in the world."