Growth in the UAE economy is continuing to slow and the International Monetary Fund (IMF) has downgraded the country's growth forecast for the third time in six months in June.
Abu Dhabi
The IMF changed its outlook for the GCC nation from 4.5 per cent annual growth to a projection of three per cent driven by an anticipated fall in non-oil growth - including construction and manufacturing - from 5.2 per cent in 2014 to three per cent this year, The National reports.
Emerging Markets Economist at Capital Economics Jason Turvey was quoted by the news outlet as saying: "Growth in the Gulf will slow over the coming years, particularly as fiscal policy becomes less supportive."
Industrial production in Abu Dhabi is reported to have slowed in Q1 of this year, with the emirate's industrial production index dipping by 0.5 per cent year on year led by weaker activities in the transport equipment and paper manufacturing industries, which both shrank by more than 60 per cent.
Construction output in Abu Dhabi has also fallen, according to data shared by the Abu Dhabi Commercial Bank earlier this year.
Nevertheless, Turvey was quoted as saying that the emirate is not under too much financial pressure to maintain the status quo and finish projects, as there are "significant financial reserves" available.
"Manufacturing is part of the non-oil sector and will likely slow as incomes rise more slowly and demand becomes weaker," he added.