Abu Dhabi’s economic growth will catch up with Dubai next year, as government-led infrastructure projects provide a boost to the capital’s non-oil economy, an IMF official said yesterday.
The fund is projecting growth of 3.3 per cent for Dubai's economy this year, while Abu Dhabi is forecast to expand only 0.3 per cent because of its heavy reliance on oil, production of which has been cut in compliance with an agreement to cut crude output globally.
“Abu Dhabi has big oil and non-oil sectors [and] slower growth is due to the oil sector’s performance because of the Opec-led production cuts and exports that went down this year. It will recover next year,” said Jihad Azour, the director of the IMF’s Middle East and Central Asia department.
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Read more:
[ IMF calls on GCC to speed up reforms as it lowers growth forecasts ]
[ World Bank lowers growth forecast for Arabian Gulf on oil cut adherence ]
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As an Opec member, the UAE is obliged to adhere to an oil deal struck last November between the group and a separate group of oil-producing countries led by Russia, which is culling 1.8 million barrels of crude per day from the market until the end of next March.
The move is aimed at propping up prices in an oversupplied market. Brent last week rose above US$60 per barrel, partly on hopes the global deal will be extended beyond March.
Dubai’s economy, which recorded 2.9 per cent growth last year, is forecast to expand 3.5 per cent in 2018, while Abu Dhabi is projected to grow at a pace of 3.2 per cent compared with 2.8 per cent last year.
The UAE's overall growth is projected to slow to 1.3 per cent this year from 3 per cent last year, but pick up next year to reach 3.4 per cent.
“Growth in Dubai is cruising at a relatively good speed. Both Dubai and Abu Dhabi are more diversified economies than the other countries in the GCC,” said Mr Azour.
“You have the investments in the Expo 2020 and you have also investments in infrastructure in Abu Dhabi. Those factors are allowing these two cities to grow.”
Officials from government body Dubai Economy forecast that the emirate's GDP will expand 3.1 per cent this year and 3.6 per cent next year, as economic drivers shift from trade to real estate, manufacturing and tourism.
Dubai plans to spend Dh47.3 billion in 2017, a budget that will be driven by a 27 per cent jump in infrastructure spending as the emirate prepares for Expo 2020.
The IMF’s projections are slightly different from forecasts from two other Washington institutions – the World Bank and the Institute of International Finance.
The World Bank is forecasting growth of 1.4 per cent for the UAE this year, but a pickup of 3.1 per cent next year.
Overall growth is expected to rise to 3 per cent over the medium term thanks to a pickup in the non-oil sector, the bank said in a report last month.
“Non-oil growth is projected to rebound as the expected improvement in oil prices and its positive effects on confidence and financial conditions dampen the effects of fiscal consolidation; and as megaproject implementation ramps up ahead of Dubai’s hosting of Expo 2020 – expected to draw in many visitors, boosting private consumption and services exports,” the Washington lender said.
The Institute of International Finance, meanwhile, is projecting that the UAE’s economy will grow 1.5 per cent this year and accelerate further to 2.9 per cent next year.
“Economic performance is likely to improve in 2017 and 2018 with firming oil prices, improvement in global trade, and the expected easing pace of fiscal adjustment,” said the IIF in a recent report.
“We expect non-oil real GDP growth to accelerate to 3 per cent in 2017 and 3.5 per cent in 2018, supported by investment in preparations for the Expo 2020 and improvement in private sector sentiment with the gradual recovery in oil prices.”
It is forecasting that Dubai will grow 3 per cent this year, while Abu Dhabi’s economy will expand 0.8 per cent.
SCHEDULE FOR SHOW COURTS
Centre Court - from 4pm (UAE time)
Angelique Kerber (1) v Irina Falconi
Martin Klizan v Novak Djokovic (2)
Alexandr Dolgopolov v Roger Federer (3)
Court One - from 4pm
Milos Raonic (6) v Jan-Lennard Struff
Karolina Pliskova (3) v Evgeniya Rodina
Dominic Thiem (8) v Vasek Pospisil
Court Two - from 2.30pm
Juan Martin Del Potro (29) v Thanasi Kokkinakis
Agnieszka Radwanska (9) v Jelena Jankovic
Jeremy Chardy v Tomas Berdych (11)
Ons Jabeur v Svetlana Kuznetsova (7)
The five pillars of Islam
COMPANY PROFILE
Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 7-speed dual-clutch auto
Fuel consumption: 10.5L/100km
On sale: Now
Price: From Dh129,999 (VX Luxury); from Dh149,999 (VX Black Gold)
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SHOW COURTS ORDER OF PLAY
Wimbledon order of play on Tuesday, July 11
All times UAE (+4 GMT)
Centre Court
Adrian Mannarino v Novak Djokovic (2)
Venus Williams (10) v Jelena Ostapenko (13)
Johanna Konta (6) v Simona Halep (2)
Court 1
Garbine Muguruza (14) v
Svetlana Kuznetsova (7)
Magdalena Rybarikova v Coco Vandeweghe (24)
THE SPECS
Engine: Four-cylinder 2.5-litre
Transmission: Seven-speed auto
Power: 165hp
Torque: 241Nm
Price: Dh99,900 to Dh134,000
On sale: now
TWISTERS
Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
What is a rare disease?
A rare disease is classified as one that affects a small percentage of the population. More than 7,000 diseases are identified as rare and most are genetic in origin. More than 75 per cent of rare genetic diseases affect children.
Collectively rare diseases affect 1 in 17 people, or more than 400 million people worldwide. Very few have any available treatment and most patients struggle with numerous health challenges and life-long ailments that can go undiagnosed for years due to lack of awareness or testing.
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
Turning waste into fuel
Average amount of biofuel produced at DIC factory every month: Approximately 106,000 litres
Amount of biofuel produced from 1 litre of used cooking oil: 920ml (92%)
Time required for one full cycle of production from used cooking oil to biofuel: One day
Energy requirements for one cycle of production from 1,000 litres of used cooking oil:
▪ Electricity - 1.1904 units
▪ Water- 31 litres
▪ Diesel – 26.275 litres
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
MATCH INFO
Manchester United 1 (Rashford 36')
Liverpool 1 (Lallana 84')
Man of the match: Marcus Rashford (Manchester United)
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COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Chef Nobu's advice for eating sushi
“One mistake people always make is adding extra wasabi. There is no need for this, because it should already be there between the rice and the fish.
“When eating nigiri, you must dip the fish – not the rice – in soy sauce, otherwise the rice will collapse. Also, don’t use too much soy sauce or it will make you thirsty. For sushi rolls, dip a little of the rice-covered roll lightly in soy sauce and eat in one bite.
“Chopsticks are acceptable, but really, I recommend using your fingers for sushi. Do use chopsticks for sashimi, though.
“The ginger should be eaten separately as a palette cleanser and used to clear the mouth when switching between different pieces of fish.”
How it works
1) The liquid nanoclay is a mixture of water and clay that aims to convert desert land to fertile ground
2) Instead of water draining straight through the sand, it apparently helps the soil retain water
3) One application is said to last five years
4) The cost of treatment per hectare (2.4 acres) of desert varies from $7,000 to $10,000 per hectare
Teachers' pay - what you need to know
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
THE SPECS
Touareg Highline
Engine: 3.0-litre, V6
Transmission: 8-speed automatic
Power: 340hp
Torque: 450Nm
Price: Dh239,312
Indika
Developer: 11 Bit Studios
Publisher: Odd Meter
Console: PlayStation 5, PC and Xbox series X/S
Rating: 4/5
Director: Nag Ashwin
Starring: Prabhas, Saswata Chatterjee, Deepika Padukone, Amitabh Bachchan, Shobhana
Rating: ★★★★
UAE SQUAD
Men: Saif Al Zaabi, Salem Al Marzooqi, Zayed Al Ansaari, Saud Abdulaziz Rahmatalla, Adel Shanbih, Ahmed Khamis Al Blooshi, Abdalla Al Naqbi, Khaled Al Hammadi, Mohammed Khamis Khalaf, Mohammad Fahad, Abdulla Al Arimi.
Women: Mozah Al Zeyoudi, Haifa Al Naqbi, Ayesha Al Mutaiwei.
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COMPANY PROFILE
Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
Herc's Adventures
Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
ARM IPO DETAILS
Share price: Undisclosed
Target raise: $8 billion to $10 billion
Projected valuation: $60 billion to $70 billion (Source: Bloomberg)
Lead underwriters: Barclays, Goldman Sachs Group, JPMorgan Chase and Mizuho Financial Group
Company Profile
Name: HyveGeo
Started: 2023
Founders: Abdulaziz bin Redha, Dr Samsurin Welch, Eva Morales and Dr Harjit Singh
Based: Cambridge and Dubai
Number of employees: 8
Industry: Sustainability & Environment
Funding: $200,000 plus undisclosed grant
Investors: Venture capital and government
The five stages of early child’s play
From Dubai-based clinical psychologist Daniella Salazar:
1. Solitary Play: This is where Infants and toddlers start to play on their own without seeming to notice the people around them. This is the beginning of play.
2. Onlooker play: This occurs where the toddler enjoys watching other people play. There doesn’t necessarily need to be any effort to begin play. They are learning how to imitate behaviours from others. This type of play may also appear in children who are more shy and introverted.
3. Parallel Play: This generally starts when children begin playing side-by-side without any interaction. Even though they aren’t physically interacting they are paying attention to each other. This is the beginning of the desire to be with other children.
4. Associative Play: At around age four or five, children become more interested in each other than in toys and begin to interact more. In this stage children start asking questions and talking about the different activities they are engaging in. They realise they have similar goals in play such as building a tower or playing with cars.
5. Social Play: In this stage children are starting to socialise more. They begin to share ideas and follow certain rules in a game. They slowly learn the definition of teamwork. They get to engage in basic social skills and interests begin to lead social interactions.
UAE currency: the story behind the money in your pockets
