United Arab Emirates: Selected Issues
IMF Staff Country Reports, June 26, 2023
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- United Arab Emirates: Selected Issues
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Bibliographic details
- Published: June 26, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400245657.002
Key findings
- The paper discusses United Arab Emirates’ (UAE) focus on reforms for productive and greener growth.
- The paper aims to quantify the potential long-term growth and productivity gains from ongoing structural reform efforts.
- Facilitating green and sustainable private finance would reduce the direct fiscal burdens of investment needs and help promote a smooth transition to a lower carbon future.
- The UAE has recently signed or started negotiations for Comprehensive Economic Partnership Agreements with eleven countries.
- Depending on the UAE’s ability to further attract foreign direct investment, the reduction of tariffs, especially on intermediate inputs, can significantly lift long-term growth through stronger competition, access to a higher number of varieties and quality of inputs, and transfer of technology.
- Developing and scaling up private green and sustainable finance, as well as creating an enabling environment for smooth energy transition, would reduce direct fiscal costs, increase efficiency of green investments, and preserve public financial wealth while delivering on growth and Net Zero ambitions.
Trade, FDI, and growth implications
- Comprehensive Economic Partnership Agreements with eleven countries present channels for increased market access and integration.
- Tariff reductions, particularly on intermediate inputs, are identified as a lever to:
- strengthen competition;
- increase access to a higher number of varieties and quality of inputs;
- facilitate transfer of technology;
- lift long-term growth contingent on the UAE’s ability to attract more foreign direct investment.
Green and sustainable finance & energy transition
- Scaling private green and sustainable finance is highlighted as a way to:
- reduce direct fiscal burdens of required investments;
- promote a smoother transition to a lower carbon future;
- increase efficiency of green investments;
- preserve public financial wealth;
- support achievement of Net Zero ambitions while maintaining growth.
Analytical focus and objectives
- Quantification of potential long-term growth and productivity gains from structural reforms is the central analytical objective.
- Emphasis on policy measures that mobilize private finance and create an enabling environment for investment in green technologies and transitions.
International Monetary Fund. United Arab Emirates: Selected Issues. June 26, 2023. Pages: 47. Volume: 2023. Issue: 224. DOI: https://doi.org/10.5089/9798400245657.002
Content in this bundle
- United Arab Emirates: Selected Issues; IMF Country Report No. 23/224; January 10, 2023