The recovery in oil prices is expected to lift economic growth in the UAE. Growth picked up to 2.9% in 2018 and is forecast to reach 3.6% in 2019. Policies to promote diversification of the economy and in particular greater infrastructure development should keep medium to long term growth around at 3% p.a. Dubai’s successful bid to host the 2020 World Expo and the positive outlook for oil prices adds some upside to the short to medium term outlook.
Per Capita GDP in the UAE has been volatile over the recent decade, driven by the swings in global oil prices. Steady growth in the broader economy should push per capita GDP to US$44,000 by 2023. However, inequality remains an issue with 63% of the income from the UAE received by 10% of the populace.