Improving capital inflows into the country is expected to support external reserves of the country. With lower oil exports, we expect the current account surplus to narrow to a still-sizeable $23 billion (Dh84.47 billion) in 2019, equivalent to 6 per cent of GDP. However, the IIF sees private sector activity, particularly in Dubai, remaining weak due to regional uncertainty, sanctions on Iran and overvalued currency. IIF forecasts show a significant pick-up in private capital inflows driven by both portfolio investments and FDI during the current year. “We see private non-resident capital inflows to the GCC increasing by $20 billion to $148 billion in 2019 driven by portfolio investments,” Iradian said.

Source: The North Africa Journal March 26, 2019 12:33 UTC