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United Arab Emirates Consumer & Retail Q3 2018

BMI View:

We continue to expect some short-term volatility as a result of the 5% VAT introduced at the beginning of 2018. Byaround Q318, this price increase should be factored into consumer purchase decision-making processes and we maintain thathouseholds are well-positioned to absorb the relatively low tax amount. Stronger stronger economic activity, rising consumerconfidence and higher oil prices will buoy our positive consumer outlook for the whole of 2018.

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