The UK's Capital Economics said a real estate crisis in the UAE is unlikely to occur, pointing out that rising property prices during the period 2012-2014 were not debt-based, as in 2009.
The UAE economy is expected to achieve the best performance among the GCC economies this year, supported by the country's preparations to host the Expo 2020 Dubai, the organization predicted in a recent report entitled "Economic Outlook for the Middle East and North Africa."
Capital Economics said quarterly data from Abu Dhabi and Dubai showed strong growth in the UAE last year.
Although it expects the oil price to reach $ 50 a barrel by the end of this year, Capital Economics does not expect that this will cause problems for the UAE economy, stressing that the current account balance of the state will continue to achieve surplus and any budget deficit will be small, The state can finance it through its large savings.
The report said that the UAE's financial policies are supporting the economy significantly, pointing out that spending on infrastructure will accelerate to prepare for the Expo, which will contribute to revive the economy when hosting Dubai in 2020.
Capital Economics said it expects the UAE economy to grow by 3.5 per cent this year and 3.3 per cent next year and expects oil output to grow by 3 per cent.
In the long term, Capital Economics confirmed that the UAE will be one of the Gulf countries to adapt to low oil prices. The country has achieved economic diversification and integrated with global supply chains through the policies taken by the country, which made it a manufacturing and logistics center in the region. .