The UAE Economy Is Expected to Grow at a Rate Between 3.25% to 5% in 2013

According to experts interviewed by Gulf News, the UAE economy is expected to grow at a rate between 3.25% to 5% in 2013 in a world still grappling with economic and financial challenges. And much of that growth is a result of government projects tendered in 2013.

According to Dr Waddah Taha, chief analyst and economist at Zarouni Group, the closer estimate of UAE growth would be between 3.25% to 3.5% for 2013.

Dr Taha said that “I am optimistic yet cautious about international challenges and their impact on the UAE economy. What is more important, however, is not growth rate but rather the containment of inflation and its negative effects. We know that real economic growth is calculated after deducting inflation; once this is done we can judge that the economy is acting positively thereof.”

He said that the 2012 unprecedented prosperity is a by product of many factors such as oil revenues, high government spending and improved business climate in the seven emirates.

Dr Numan Ashour, chief analyst and economist at CNBC Arabia, agrees. He said that what’s most important is to control inflation as prices are getting higher while income remains capped.

Mr Ashour said that “My expectation is that the growth rate will be between 4% to 5% in 2013 as the government will be financing real estate projects worth up to AED 300 billion in 2013.”