Dubai Financial Market General Index has gained more than 4% since last year. This 4% increment came at the time the market outperformed regional peers.
“If the status quo continues, and we get an improvement in oil prices and because of the Expo 2020, the UAE and Qatar economies should be positive in 2017 compared to 2016. For now, we don’t try to be pessimistic,” Mohammad Ali Yasin (managing director at National Bank of Abu Dhabi Securities) told Gulf News on a phone conversation.
“There are two major factors for us in the UAE, an improvement in the average oil price would be positive for us — even if it is closer to $60 per barrel. That could be a good position for the government for not to withdraw much of its investment. The second factor which is positive for us is that the Expo 2020 commitments have not started yet, but they’ll have to start it at the end of 2017. So through the commitments there would be an urgency to award these projects,” Yasin said.
“That is where I believe that from the second half of 2017, we could see a turnaround in sentiment, after the continuous drop we saw from the start of 2014. Oil prices may be closer to $60 in 2017, and it’s better for the UAE, and it would be better than that is was last year,” he added.