Abu Dhabi: Oil prices are expected to start climbing back by the middle of this year, the UAE’s Minister of Economy, Sultan Al Mansouri, said on Monday.
“My expectation is that [oil prices are] not going to go that far, so by the middle of this year, we should see some positive turn in prices due to the expected positive turn in the economies of major blocks such as [Europe], the US, and China,” the minister said.
He added that the UAE’s strategy of diversifying income has helped the country reduce its dependence on oil.
Al Mansouri was speaking to reporters on the sidelines of the ninth GCC Regulators’ Summit, taking place in Abu Dhabi.
Asked if he expected the UAE’s gross domestic product to have grown at its forecast rate of 4.5 per cent in 2014, he said, “What we do is we review this on a quarterly basis, so by the end of March, we need to review that based on the prices of oil.
“Meanwhile, we need to also look at the non-oil sector, and if we have growth that is at least matching the drop in oil prices, may be it will stay 4.5 per cent.”
He added that a fair oil price depends on supply and demand, and that with the expected pickup in global economies, there will be increased demand for oil, and hence, a rise in prices.
“We have to look at this from the view point that the drop in prices could be a facilitator for growth of other economies in China, India, Europe, and America, because there was a need for this kind of drop to make sure that it helps them to grow again,” the minister said.
