According to credit insurer Euler Hermes, the UAE economy would be expected to grow 3.5%. This growth would come from the infrastructure development markets as well as improving business climate in the country.
The forecast was published on Monday and the rate would be higher than the 3.1% growth projected by the International Monetary Fund. This though is lower than the 3.9% recorded last year.
Euler Hermes' analysis showed the economic growth in the Gulf region was expected to decline in the 2013 at 4% and 2014 at 4.3% respectively. For 2011 and 2012, the six nations comprising the GCC had posted growth of 7.2% in 2011 and 6% in 2012 respectively. The UAE and Saudi Arabia were the two biggest contributors to the overall Gross Domestic Product of the GCC.
According to Euler Hermes, the slowdown in growth can be attributed to the projected decline in oil production for the year. This is attributed to decrease in demand from the United States as shale gas developments increase production and slow growth done in China.
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