The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Oil lows hit UAE, Oman and Qatar

Middle East: Arab banks lay regional plans

Bahrain: diversifying away from oil

Saudi Arabia and Kuwait: closed-economy cousins

Although the federal government of the United Arab Emirates predicts 3.5% GDP growth this year most economic commentators expect growth of between 0% and 0.5%. Last year GDP dropped by some 5.5%.

Directly, oil constitutes about a third of GDP so the economy has suffered less from the drop in crude prices than elsewhere in the region. However, oil service companies in Dubai are now beginning to report a slowdown, suggesting that more pain is to come.

The federal budget will be inflationary, increasing spending over 1998's $5.8 billion. Revenue is projected to equal the 1998 figure, which seems optimistic. UAE statistics, covering seven emirates, are in any case notoriously difficult to interpret. There is income-sharing across the emirates but income from each one must be considered individually. The emirates' spending taken together exceeds the Federal budget. Comprehensive budgetary figures are never released.

The two most economically important emirates - Abu Dhabi and Dubai - are diversifying away from oil as rapidly as possible.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree