UAE economy may shrink over output cut move

The economy of the UAE is likely to contract one per cent this year, led by a decline in its oil sector as it implements Opec production cuts, Samba Financial Group said yesterday.

Economic growth in the Gulf oil exporter would likely recover to nearly 3pc next year as global conditions improve and oil production recovers, the Saudi-based bank said.

In February, Samba predicted economic growth in the UAE would slow to 0.5pc this year, from 6.8pc last year.