A recent report showed that the UAE economy has shown great resilience to the shock of falling oil prices over the past three years as the UAE enjoys a diversified economic structure and local political stability, as well as a wide range of foreign assets.
The report, issued by the Bank of Lebanon, predicted the recovery of the UAE’s economic growth, benefiting from diversification in the tourism, trade and financial services sectors, which will help mitigate the effects of lower oil prices and provide the basis for healthy growth.
The UAE economy will grow by 3.4% in 2018, benefiting from stable oil prices and improved global trade. The foreign trade surplus has been growing well thanks to the wise diversification efforts of the UAE government, especially in tourism, financial services and non-hydrocarbon trade, Which contributed to mitigating the negative effects of the oil decline.
The report showed that total exports of free goods on ships rose by 6.3% year-on-year, while imports rose by 4.2% and the UAE’s trade surplus grew by 13.2% year-on-year to $ 77.3 billion.
The report attributed the modest performance of UAE stocks last year to the growing geopolitical tensions at the regional and global levels.
The report pointed to the growth of the banking sector in 2017 with an increase of 3.6% to total assets to 731.7 billion dollars at the end of last November.