The GDP is projected to grow by around 4.5 per cent this year, supported by ongoing strength in non-oil growth, said an International Monetary Fund (IMF) report.

The economic recovery in the UAE continued at a solid pace led by construction, logistics and hospitality sectors. The ongoing public projects in Abu Dhabi and the strong services sectors in Dubai have continued to underpin growth, it stated.

The IMF mission led by Harald Finger, visited the UAE from October 28 to November 5 to review macroeconomic and financial developments in the country.

The team members later met Mubarak Al Mansoori, the governor of the UAE Central Bank, Obaid Humaid Al Tayer, the minister of state for Financial Affairs; Mohammed Al Shaibani, the director general of The Ruler’s Court of Dubai and CEO of the Investment Corporation of Dubai and Mohamed Al Hameli, the director general of Abu Dhabi Department of Finance for discussions.
 
"Growth in real hydrocarbon GDP has continued to moderate in the context of an amply supplied global oil market," observed Finger.
 
"Residential real estate prices in Dubai stabilized over the summer as sales volumes moderated. The slower momentum in the market is welcome news following a period in which prices had increased at a fast pace," he noted.
 
According to Finger, the fiscal policy this year has continued to gradually unwind the large expansion that was put in place in the wake of the 2008/9 global financial crisis.

The decline in oil prices by around 20 per cent over the last three months, if sustained, could have a significant impact on oil revenue, he added.

The IMF official pointed out that the UAE has sovereign wealth fund buffers and a relatively lower fiscal breakeven price compared to other major oil producers, allowing it to continue on its path of gradual fiscal consolidation and thereby to minimise the drag on growth.
 
“Banking system developments have been broadly encouraging. Amid ample liquidity in the banking system, private sector credit has continued to strengthen. The banking system has remained well-capitalized and non-performing loans have continued to decline," he added.-TradeArabia News Service