UAE started implementing a value added tax (VAT) rate of 5% on goods and services from January 2018. BMI Research predicts that UAE will see the most positive effect of all GCC states from the introduction of VAT.
UAE Real GDP Growth
Source: IMF World Economic Outlook
It is expected that UAE’s economic growth will pick up significantly in 2018, driven mainly by the construction sector as preparations gain speed for the World Expo 2020 in Dubai. The Expo will likely boost the tourism industry and ensure continued double-digit growth rates.