Knowledge Note

"Growth in the UAE is expected to reach 2.5 percent by 2022; supported by the government’s mitigation and recovery plans, higher oil prices and production capacity, improved business sentiment and a boost from Dubai Expo 2021."

UAE’s economy will contract in 2020 due to the disrupted engines of growth from COVID-19 pandemic containment efforts, OPEC+ oil production cuts, lower oil prices, reduced global oil demand, and disruption in global supply chains. The government continues to provide mitigation support in response to the pandemic as businesses strive to recover, worsening the consolidated fiscal deficit. The medium-term nonhydrocarbon outlook remains uncertain and hinges on a rebound in tourism and trade following a global recovery.