ABU DHABI: : Confidence improved in the UAE in the first quarter of 2018 as economic buoyancy across the Middle East rebounded strongly to its highest level since second quarter 2015, professional accountants said.
Confidence is at a fairly elevated level by recent standards, according to the latest Global Economic Conditions Survey from the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants.
“The pick-up in confidence in the UAE is due in part to the fading impact of last year’s Opec production cuts. Other reasons include an increase in non-oil exports on the back of strong global growth, extra spending ahead of Expo 2020 Dubai and a less restrictive fiscal policy,” the survey said.
Lindsay Degouve de Nuncques, head of ACCA Middle East, said the UAE in particular has enjoyed an increase in non-oil exports and increased spending ahead of the 2020 World Expo. “The rise in confidence is encouraging given the country introduced VAT this year, providing further economic stimulus,” she added.
Analysts at ACCA noted that with fiscal policy being eased, it was no surprise that the government spending sub-component remained high in the UAE.
