UAE on recovery path.

The UAE is heading in the right direction with the economy on rebound mode, thanks to ongoing fiscal stimulus measures, spending related to hosting Dubai Expo 2020, rate cuts, and continuing diversification efforts, said UBS, a Swiss financial services company.

Ali Janoudi, UBS' head of Wealth Management Middle East and Africa, said the UAE is on a slow recovery path from the 2014-2017 oil shock, and significant fiscal buffers remain in place. However, he noted that headwinds would persist this year and the next, due to lingering trade tensions, the global economic slowdown, low energy prices, Opec-led production cuts, and regional tensions.

"The UAE is moving towards the right direction by making reform and diversification efforts along with other countries such as Saudi Arabia, Egypt, Morocco, among others and growth is expected to pick up in 2020," said Janoudi. "We expect ongoing pressure on the local real estate market...