TAG: UAE: Ajman
The results of our most recent OBG Business Barometer: UAE CEO Survey arrive amid a flurry of global economic headlines. On July 23 the IMF announced a downward revision of global growth forecasts to 3.2%, citing the ongoing uncertainty stemming from escalating tariffs and tensions as the main drags on future growth. Meanwhile, on July 25 Mario Draghi, the president of the European Central Bank, suggested that a rate cut and a fresh round of quantitative easing measures to stimulate eurozone growth were on the horizon. Talk of an interest rate cut reflects moves in the US, where the Federal Reserve announced an interest rate cut of 25 basis points at its most recent meeting in late July.
The IMF, which forecasts GDP growth will reach 3.3% in 2020, has noted that green shoots are beginning to emerge in the UAE, nourished by domestic credit growth and low unemployment figures. This is a sentiment that chimes with OBG’s assessment of the local market. The results of the latest Business Barometer: UAE CEO Survey reveal a generally upbeat and optimistic private sector, with 64% of respondents either positive or very positive about the country’s business environment over the next 12 months.
The Gulf has had to navigate some challenging terrain in recent times, and in the second half of 2019 these challenges have come in the form of steady escalation of tensions with Iran, which have dominated global headlines emanating from the region.