Dubai's expansionary budget to reinvigorate economy
Saturday, 01 04 2020, Category: Economy, Country: U.A.E
The expansionary budget announced by Dubai on Sunday will boost the economy, businessmen and analysts said on Sunday.
"We are encouraged by the signal that this new budget sends to the market, and believe effective deployment of the expanded budget will provide much-needed economic stimulus and help to reinvigorate the economy. As the government does not have control of domestic interest rates, it must rely on fiscal stimulus and macro-prudential tools, such as relaxation of bank lending limitations, in order to stimulate the economy," said Zachary Cefaratti, CEO of Dalma Capital.
He noted that the continued expansionary policy, in combination with potentially improving geopolitical conditions and low interest rates, should allow the economy counteract deflation and restore growth.
"With asset prices subdued, restoring favourable economic conditions would provide investment opportunities in the market. Both fiscal and monetary policy have a lagged effect on the market, but we are cautiously optimistic about the Dubai economy in 2020-2021 and believe that the slowdown has also created great opportunities for astute investors," he added.
Source: Khaleej Times