Bank of America: 2.5% growth of the UAE output 2018

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Bank of America Merrill Lynch forecast that the UAE’s non-oil economy will grow by 2% by the end of this year, rising to 2.5% in 2108, based on the $ 50 price per barrel, pointing to the Bank’s positive outlook for the country’s overall economic growth over the next 12 months. Especially with expectations of the price of a barrel of oil to $ 64 a barrel next year.

The UAE stock markets are the most attractive for investment among the region’s markets, especially as trading is in a low-profit environment compared to the past two years, bankers said during a press conference to review the reality of investment in emerging markets in the Middle East and North Africa. In line with the level of emerging market indices.

“Oil prices give investors greater confidence in the UAE stock markets, and the announcement of the federal budget is an additional support for the stock markets,” said Houtan Yazhari, Head of Middle East and North Africa Research and Emerging Markets at the conference. We see good opportunities in the equity markets, especially in the Dubai Financial Market. We can comment on the stocks we cover, namely Dubai Islamic Bank and Emirates NBD, as favorites.

“The impact of added value will be limited to investor confidence, especially as the volume of consumer income will be able to absorb that limited impact in 5 percent within six to 18 months,” he said. “We expect the impact of VAT in the UAE to be the lowest in the region, and strong government spending will largely offset the impact of this tax,” he added.

“We believe that the Saudi economy is undergoing an unprecedented transformation as the government seeks to reduce its reliance on oil revenues. To that end, a number of measures are being implemented, including, inter alia, the pursuit of considerable fiscal control.