The United Arab Emirates economy may grow 2.9 percent next year, investment bank EFG-Hermes Holding SAE said today, lowering its forecast from 3.4 percent on fewer expected projects in Abu Dhabi and slower spending in Dubai.
The change comes “on signs of weaker-than-expected project implementations in Abu Dhabi and lower oil production increases,” economists Monica Malik and Mohamed Abu Basha wrote in the quarterly report released today. “Deleveraging, further Dubai Inc. restructuring, falls in real estate prices, and fiscal retrenchment in Dubai should result in a weak domestic demand environment in the medium term.”
The International Monetary Fund said on Oct. 6 that it expected the U.A.E. economy to expand 3.2 percent in 2011, adding that the “health of the corporate sector” remains a challenge. Dubai World, one of the emirate’s three main holding companies, last month said it secured approval from creditors to change the terms on $24.9 billion of debt.
No comments:
Post a Comment