The Central Bank of the UAE (CBUAE) now expects the inflation-adjusted gross domestic product (GDP) to expand 2.3 per cent in 2018, instead of the 2.7 per cent it projected three months ago.
The CBUAE has cut its forecast for economic growth this year after non-oil growth slowed slightly in Q2 2018.
The central bank said that non-oil part of the economy grew 3.6 per cent year-on-year in Q2, compared to a revised 3.8 per cent in Q1, which was the fastest rate since the beginning of 2016
The non-oil economy is now being expected to grow 3.6 per cent in the whole of 2018 while oil GDP shrinks 0.5 per cent as global oil producers have agreed to increase output in Q2 2018.
Additionally, another factor weighing on UAE is real estate. In Q2, Dubai property prices fell 5.8 per cent from a year earlier and 1.7 per cent quarter-on-quarter, reported Reuters.