The reforms follow years of austerity after the collapse in oil prices in 2014 strained government revenues and weakened growth across the Gulf. Last year, economic growth in the U.A.E. slumped to an inflation-adjusted 0.5 percent after OPEC nations agreed to production cuts, down from 3 percent in 2016.
On Sunday, the U.A.E. also decided to cut electricity fees for industries starting in the fourth quarter, according to state news agency WAM. Electricity consumption costs for large factories will be slashed by 29 percent, while the small and medium factories will have fees reduced fees by 10 percent to 22 percent. Service connection fees for new factories will be waived.
“Improving the competitiveness of our country is a journey that has no finish line,” WAM quoted Sheikh Mohammed bin Rashid Al Maktoum, the U.A.E. vice president and prime minister and ruler of Dubai, as saying.
This article was provided by Bloomberg News.