The UAE economy is likely to see a V-shaped recovery this year after being battered by the coronavirus pandemic and depleting oil prices, according to a report released by the First Abu Dhabi Bank (FAB). In its report called ‘2021 Global Investment Outlook Report: Paving the Path for Our Investors to Grow Stronger, the bank has said that factors such as a rebound in tourism and oil prices will lead the economic recovery for the UAE.
The UAE Central Bank has forecasted that the economy will grow by around 2.5 percent overall after falling by around six percent in 2020. The non-oil sectors are expected to post a 3.6 percent growth, after shrinking by five percent last year.
The World Bank forecasts that the United Arab Emirates (UAE)’s economy will contract by 4.5 percent in 2020 due to the coronavirus pandemic and the lockdown measures introduced to counter it. The World Bank also forecasted that the economy will pick up next year and will grow at a rate of 1.4 percent. This will be attributed to the growth of the non-oil sector after the restrictions will be eased.
The Global Economic Prospects 2020 report by World Bank projected a 4.2 percent contraction for the wider Middle East and North Africa (MENA) region in 2020 and 2.3 percent growth this year.
In its report, the World Bank said, “Oil exporters have been adversely impacted by the plunge in oil prices and Covid-19 outbreaks, while oil importers are experiencing spillovers from the weakness in advanced economies and major emerging markets, pandemic mitigation measure-related disruptions, and an expected drop-off in tourism.”