While traditional growth sectors within the United Arab Emirates are starting to recover from the global recession at present certain sectors are already starting to emerge as the most resilient and these would include the petrochemicals industry, logistics, manufacturing and ICT.
MR Raghu, Senior Vice-President of Research at the Kuwaiti Financial Centre stated that many of these sectors are expected to perform well because they have the “non-cyclical nature” and subsequently they have also been less hindered by the global recession.
Giyas Gokkent, Group Chief Economist at the NBAD, feels that the United Arab Emirates will do well in certain areas where they have a distinct advantage specifically in sectors such as the petrochemicals industry, aviation and logistics. All of these areas are currently expanding rapidly and they will become more important to the economy over the coming years. The real estate industry should also recover well in the long term and this will be largely attributed to the predicted growth in population for the region which will be helped by the fact that there is no income tax in the region and that the UAE has a “cosmopolitan outlook”. This may also entice people in from nearby countries said Giyas Gokkent.
However Ragu said that many core industries that would have sustained the economy of the region in the past may have difficulty in the coming years. Sectors such as the financial services, construction and the real estate will continue to be weak for the foreseeable future as a result of the “liquidity shortage” and “asset quality problems”.Paul Holdsworth, Staff Writer, Gulf Jobs Market News