yota691 Posted June 12, 2014 Report Share Posted June 12, 2014 Confirmed entrenched recovery of the national economy and prosperity of the non-oil sectors «IMF»: stress tests confirm the durability of the state of the banking sector Font Size | Date Published: Thursday, June 12th, 2014 Mustafa Abdel-Azim (Dubai) The International Monetary Fund confirmed that the UAE economy has cemented his recovery during the year 2013 supported by a bloom non-oil sectors in Abu Dhabi and Dubai, particularly the sectors of tourism, hospitality and real estate, as well as continued government spending. He said the fund, which revealed yesterday, the results of the Article IV consultation for 2013 for the UAE, said that in spite of moderate growth for the sector production of oil in 2013, but public spending on projects in Abu Dhabi and the overheating of the sectors of services in Dubai contributed in supporting the growth of GDP Emirates by about 5% in the past year, pointing out that in the midst of this cycle of recovery Emirates has succeeded in becoming a safe haven for investments in light of the unstable situation in the region. The results of the report of the IMF mission to the UAE to the current account surplus of the state reached during the last year about 16% of GDP, while the accelerated pace of recovery in the real estate sector in some of the slides, especially in the residential real estate market in Dubai, which saw a rise in prices at an average annual rate of 30% until the end of March 2014, noting that it contributed to the increase in the average feed rents in Dubai and increase the level of inflation up to 1.9% on an annual basis during the period from March 2013 and March 2013, compared with 1% in the same period. The report said the strong performance of the stock markets reverse the significant improvement in the levels of confidence in the economy, noting robust financial state during the past year after that Dubai was able to reduce the budget deficit faster than planned. The report also pointed out that the banking system in the country has high levels of liquidity, which has contributed to the emergence of signs of recovery beginning of the credit granted to the private sector, which rose by 8.2% in 2013, and the fastest growth in the first quarter of this year. The report pointed out that the banks continue to increase exposure to government and public projects by about 15 billion dirhams, accounting for about 6% of the heads money banks, noting the decline in non-performing loans compared to previous years, but are still high, especially among Dubai banks. The fund that the banking system in the UAE enjoy high levels of capitalization, where levels increase financial efficiency to 18.5% as of March 2014, pointing out that the stress tests conducted by the central bank showed that the banking system is able to absorb and absorb any shocks related to liquidity and capitalization. And drawing Fund optimistic expectations for the performance of the national economy this year expected GDP growth this year of about 4.7% and about 4.5% in the coming years with the support of non-oil sectors, which will continue to contribute to strong output, which is expected to register growth this year, more than 5.5% of the support of the global economic recovery and the consolidation of domestic confidence, in addition to the factor «Expo 2020», which would be a new catalyst for the growth of these sectors. Link to comment Share on other sites More sharing options...
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