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UAE budget will be unaffected by lower oil prices

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Staff writer ▼ | January 20, 2015
Plunging oil prices will not have an effect on this year's federal budget, according to the Minister of Economy Sultan Al Mansouri.
Sultan Al Mansouri
Emirates   According to the Minister of Economy Sultan Al Mansouri:
Oil and gas accounts for 40 percent of the country's GDP, and the economy is expected to grow at between 4 and 4.5 percent this year.

"We have diversified the economy in the last 42 years, and while it will not have any immediate impact on the federal budget, it will eventually in the next two to three years," Sultan Al Mansouri, the Minister of Economy, said on the sidelines of a new factory opening in Dubai.

"However, my expectations are that the prices will stabilise in the next six months to a year."

He expects cheaper oil to enhance sluggish economic growth, especially in China and other emerging countries.

"How low the market's floor will be is anybody's guess. But the sell-off is having an impact," the International Energy Agency, the Paris-based energy watchdog, said in a report on Friday. "A price recovery – barring any major disruption – may not be imminent, but signs are mounting that the tide will turn."