The UAE’s Gross Domestic Product, GDP, in constant prices, is projected to grow to Dhs1.501 trillion in 2020 from Dhs1.464 trillion in 2019 and Dhs1.442 trillion in 2018, said Obaid Bin Humaid Al Tayer, Minister of State for Financial Affairs, and Chairman of the Federal Tax Authority.

Al Tayer was answering a question from a member of the Federal National Council, FNC, during a session on Tuesday on the impact of the Value Added Tax, VAT, on the national economy.

The five percent VAT was introduced in the UAE on 1st January, 2018, which is a relatively short period to have enough data that could measure its deep economic impact, he said.

“The 2019 data is not yet out, and all we have is data for 2018,’’ he explained, adding that GDP is a real index for the macroeconomic performance of the state.

‘’We should bear in mind the global factors when the UAE implemented the VAT, such as the decline in oil prices across the world, slow growth of the global economy, increasing trade protectionism and economic sanctions slapped on some countries in the region; all these factors have a close connection with the GDP,’’ he added.

WAM