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The emirate will be the fastest-growing economy in the Gulf this year
A photo shows the Dubai skyline with the Burj Khalifa in the background. UAE GDP is expected to grow by 5.9% in 2022 and 4.1% this year due to expansion in the non-oil sector.
The World Bank has revised up the UAE’s growth forecasts for 2022 and 2023 by 1.2% and 0.7%, respectively, from previous forecasts.
According to the World Bank’s latest Global Economic Prospects report, the UAE’s GDP is expected to grow by 5.9% in 2022 and 4.1% this year, driven by expansion in the non-oil sector.
Growth in all Gulf Cooperation Council (GCC) economies will slow this year, with the UAE set to be the fastest-growing economy in the Gulf region in 2023, data showed.
| nation | 2022 | 2023 | 2024 |
| United Arab Emirates | 5.9 | 4.1 | 2.3 |
| Bahrain | 3.8 | 3.2 | 3.2 |
| Kuwait | 8.5 | 2.5 | 2.5 |
| Oman | 4.5 | 3.9 | 2.4 |
| Qatar | 4.0 | 3.4 | 2.9 |
| Saudi Arabia | 8.3 | 3.7 | 2.3 |
The global economy is expected to slow sharply due to high inflation, rising interest rates and reduced investment.
The World Bank’s latest “Global Economic Prospects” report predicts that the global economy will grow by 1.7% in 2023 and 2.7% in 2024, a drop of 1.3 percentage points and 0.3 percentage points respectively. However, it cut its 2024 growth forecast for the UAE by 1.3% to 2.3%.
In December, the Central Bank of the United Arab Emirates (CBUAE) raised its economic growth forecast for 2022 to 7.6 percent from an earlier forecast of 6.5 percent, citing stronger-than-expected performance in non-oil sectors such as real estate, travel and tourism, hospitality, manufacturing and more. industry and transportation.
In December, the Central Bank of the United Arab Emirates (CBUAE) raised its economic growth forecast for 2022 to 7.6% from its previous forecast of 6.5%.
The top bank expects the non-oil economy to grow 6.1% in 2022, compared with a previous forecast of 4.3%. The oil industry is expected to grow by 11% in 2022.
For the GCC region, the World Bank expects real GDP growth of 6.9% in 2022, 3.7% in 2023 and 2.4% next year.
Growth in the Middle East and North Africa (Mena) is expected to slow to 3.5% in 2023 and 2.7% in 2024 from 5.7% last year, as a recent recovery in data from oil exporters falters.
World Bank Group President David Malpass said emerging markets and developing countries are facing years of slow growth.
World Bank Group President David Malpass said emerging and developing countries are facing a combination of heavy debt burdens and weak investment as global capital is absorbed by advanced economies facing extremely high levels of government debt and rising Rates driven by multi-year periods of slow growth.
“Weakness in growth and business investment will exacerbate already devastating reversals in education, health, poverty and infrastructure, as well as the growing demands of climate change,” he said.
Growth in advanced economies is expected to slow to 0.5% in 2023 from 2.5% in 2022.
— waheedabbas@khaleejtimes.com
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