UAE best placed in GCC for recovery: report

Things could be looking up for the UAE's economy next year

A report from BofA Merrill Lynch Global Research has suggested that the UAE is the best positioned nation in the GCC to recover from the recession.

Next year is likely to see regional budgets move back to a surplus of 5.6% of GDP, from a deficit of 0.8% of GDP this year.

“The UAE is the best positioned, then Saudi Arabia, to benefit from picking-up global economic activity, higher oil prices, a weaker US dollar and the easing credit crunch,” said the report.

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BofA Merrill Lynch Global Research added that the region had lagged behind an overall global rally in summer but looked set to capitalise on opportunities in the future.

“As trading volumes are picking up with the end of the Ramadan, we believe the positive global picture will become the dominating theme. Besides, attempts to restructure Saad / Al Gosaibi debt in Saudi Arabia, as well as officials ensuring announcements in the UAE on debt service of Dubai Inc. companies (eg. Nakheel), are all good news,” said the report.

The report is the latest which attempts to make sense of the current economic situation in the GCC. Other reports have suggested the UAE has been the worst hit in the region by the slowdown or that rental price values are beginning to slow down in rate of decline.