UAE GDP to grow 4.8%: Moody’s

The UAE’s real non-oil GDP will grow by 4.8 per cent next year on the back of increased investment in infrastructure and real estate sectors after UAE won Expo 2020 bid, Moody's Investors Service said in a report.

The UAE's winning bid to host World Expo 2020 signals renewed investments in Dubai's infrastructure and housing, the ratings agency said.

Last month, Meed Projects estimated that the total value of contracts awarded in the UAE 2014 will increase to $35 billion (Dh128.45 billion) from $30 billion in 2013.

Moody’s said the UAE's dynamic non-oil economy has strongly recovered based on trade, logistics and tourism, and Moody's expects real non-oil GDP will grow 4.8 per cent in 2014.

Ludovic Subran, chief economist of Euler Hermes, in September predicted growth of four per cent for the UAE in 2014.

Although public-sector debt remains high, Moody's expects the upcoming maturities to pose little refinancing risk. The rating agency also estimates the UAE's vulnerability to external risks to be very low, as the government's large current account surpluses reinforce its reserve buffers.

It also affirmed UAE’s Aa2 government bond rating with stable outlook, reflecting the country's large hydrocarbon endowment and the growth performance of its non-oil economy. Moreover, the UAE's policy framework is sound and the economy has demonstrated its resilience to downturns in global economic cycles.

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