Dubai skyline
The US dollar’s overwhelming strength had made buying real estate in Dubai pricey for foreign investors in the last two years. Image Credit: Supplied

Abu Dhabi: The overall real GDP of UAE is estimated to have grown by 1.7 per cent in 2019, according to the Central Bank of the UAE.

“The UAE hydrocarbon sector is estimated to have exhibited a growth of 3.4 per cent in 2019. However, non-oil activities advanced at a softer pace growing by 1.0 per cent. As a result, overall real GDP is estimated by FCSA (Federal Competitiveness and Statistics Authority) to have grown by 1.7 per cent in 2019,” said the financial regulator in its Annual Report 2019.

“The spread of COVID-19 is expected to impact trade and supply chain movements, coupled with travel restrictions which paves way for high volatility in capital markets and commodity prices. While the outbreak is expected to negatively affect the global and domestic economies, it is still early to gauge the scale of the economic fallout,” the report added.

The report noted that the higher hydrocarbon output, as well as growth in non-hydrocarbon economic activity, supported the pace of the country’s overall economic growth in 2019.

“Meanwhile, the fading effect of VAT, the appreciating dirham, lower energy prices and decline in rents pushed inflation in negative territory. However, the employment rate registered a steady rebound. Looking ahead, the economic outlook for 2020 remains uncertain owing to the COVID-19 outbreak,” the report said.