The President and CEO of Institutional International Finance (IIF) said that “the U.A.E’s strong economic recovery and domestic political stability will continue to attract more entrepreneurs and foreign capital”. The IIF are in Dubai to take part in the 2014 IIF Mena CEO Meeting.

“In 2014, UAE is expected to grow more than 4% .” commented by Mr. George T. Abed who is the Senior Counselor and the Director for Africa and the Middle East of the IIF. “Non-oil real GDP growth in the UAE continues to show solid expansion, at roughly 4%. Trade, retail sales and tourism continue to register strong growth and the real estate sector and construction sectors have made a bid turnaround.” Abed added.

IIF officials noted that the Arab spring and regional turmoil has not adversely impacted the economic growth in the UAE and the increasing liquidity will boost loan growth in the country despite bad loans and provisions been on a decline in the banking sector of the UAE. Instead, it has   drawn more capital flows into the country. The president of IIF said that, “Political and economic stability of the country has attracted capital inflows from the Middle East. With the growth momentum picking up in recent months, we expect sustained capital flow into the country.”

While the funding of investments associated with collection 2020 are going to be for the most part driven by the general public sector and government connected entities, the IIF officers suggested the banking sector to be even handed in their disposition as a result of over-leverage could lead on to a rise in drawback loans.

Abed stated, “Banks really should measure the enterprise models of businesses on their sustainability as soon as the Expo 2020. Post-event, at least several firms may encounter any slow. ”

Rising net foreign assets

The medium –term outlook of the UAE   depends on the global recovery’s pace as well as on the progress realized on financial and institutional reforms.  For the GCC as a whole, the IIF officials said the financial position of the oil-exporting countries continues to   increase strength with total net foreign assets increasing to $ 2.5 trillion in 2013, equivalent to 95% of the countries’ aggregate GDP.

The recent withdrawal of ambassadors by the UAE, Saudi Arabia and Bahrainthrough Qatar seriously isn’t seen as an momentary problem as well as will most likely not have any serious impact on economic relations among these countries.

The IIF observed of which geopolitical fissures are normal throughout the bigger Arab-speaking place stretching for you to nearby and related nations around the world. Most of these ailments connected with division, weak point and infighting have resulted in your design connected with chances with regard to outdoors local players for you to pass through your Arab-speaking system, as a result growing concerns and improving instability.

The latest realignment of the new regime in Cairo with the boarder interests of the three largest GCC countries is supportive of regional economic and political stability. Saudi Arabia, Kuwait and the UAE have already the supply of essential economic to Egypt and Jordan and have been able to maintain constructive economic relationships with Morocco and Tunisia.

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The emirate of Dubai will be fully prepared to receive 25 million visitors when it hosts the World Expo 2020 international event in six years time. Speaking in an interview, Najeeb Mohammad Saleh, Head of Planning Research Section, Planning Department at Dubai Municipality, discussed how Dubai expects to cope with the influx of residents and visitors in 2020, we looked at three different scenarios – Low, Medium, Rapid and adopted the medium-growth scenario, and expect the population by 2020 to be about 2.8 million.

In 2010, the Executive Council appointed a steering committee made up of Dubai Municipality, the Roads and Transport Authority, Dubai Electricity and Water Authority, Dubai Civil Aviation, Lands Department, and Dubai Maritime City. These six government entities have since been responsible for planning, implementing and supervising the master plan for Dubai 2020.

In 2010, Dubai recorded 1.9 million residents and by the end of 2013 this had reached 2.23 million. “The existing urban area can reach up to 93,106 hectares, which we feel is sufficient for us. And, by 2020, we expect to grow an additional 25,000 hectares. But even if the rate of the growth is faster than we expect, with a maximum of 38,000 hectares, the capacity of the city and its urban area can still hold that,” said Saleh.

The city’s urban planning also involves evaluating the amount of office and retail space needed by 2020. There were 5.1 million square metres of existing office space in 2010, and the demand for 2020 is expected to add an additional 1.8 million square metres. The total retail floor space in 2010 was 5.3 million square metres, and is expected to increase to 6.5 million square metres.

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The Ministry of Finance has signed a Tax transparency Memorandum of Understanding with the Dubai Multi Commodities Center. The U.A.E’s largest and fastest-growing free trade zone, at the Ministry’s Headquarters in Dubai, which will assist in ensuring international standards of transparency in the exchange of information for tax purposes.

The MOU was signed by HE Younis Haji Al Khouri, Undersecretary of MOF and Ahmed bin Sulayem, who is the Executive Chairman of DMCC. The MOU agreement will implement transparency and a clear exchange of information between the MOF and the DMCC, ensuring that a principled process is applied to tax legislation that affects both companies and individuals.

The agreement’s aims is to strengthen the cooperation between the competent authorities responsible for the exchange of information for tax purposes, elevating the U.A.E’s tax practices in line with a global benchmark.

Commenting on the MOU, to support the national economy, the Ministry is committed to work with like-minded partners. This commitment is reflected through the signing of the MOU with DMCC. Also  the MOF continuously seeks to strengthen its cooperative relationships with various federal and local government entities in the U.A.E in order to attract more investments and guarantee prosperity in the U.A.E, which in turn will contribute to the U.A.E’s GDP.

Commenting on the importance of the MOU, as the international hub for trade and enterprise, DMCC, the U.A.E’s largest and fastest growing free zone, has and will continue to increase the flow of trade through Dubai and continue to make a significant contribution to the growth of the economy.

“At DMCC we always look at ways of improving efficiencies. Signing a MOU with the Ministry of Finance will further enhance collaboration across both Government entities to increase foreign direct investment and GDP contribution as we continue to demonstrate our commitment to his Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister of the U.A.E and Ruler of Dubai’s vision to establish Dubai as the main global economic hub.”

The Ministry of Finance has been already set about ensuring key stakeholders in the U.A.E become acquainted with the legal framework on the exchange of information related to tax, as recommended in the “Evaluation of the U.A.E” report. To guide the various stakeholders in the implementation of the legal framework and its recommendations, the Ministry has organized and will host a series of meetings with the various stakeholders.

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