The recent recovery in oil prices is expected to lift economic growth in the UAE. Growth slowed to 1.3% p.a. in 2017, but is predicted to pick up to 3.4% this year and 3.1% 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 adds some upside to the 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$42,000 by 2022. However, inequality remains an issue with approximately 55,700 people considered multi-millionaires in 2017 and 90% of the income from the UAE is received by 0.2% of the populace.