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UAE economy to grow 4.3% in 2024, central bank says

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The UAE Central Bank expects the country’s economy to grow by 4.3% in 2024, maintaining its growth forecast of 3.9% for this year.

The banking watchdog expects the non-oil economy to grow by 4.6 percent next year and oil gross domestic product to grow by 3.5 percent, state news agency Wam reported on Monday.

It expects non-oil GDP to grow by 4.2% in 2023 and oil GDP to grow by 3%.

The UAE economy grew by an estimated 7.6% last year, the highest in 11 years, following growth of 3.9% in 2021, the central bank said.

Non-oil GDP and oil production are estimated to have grown by 6.6% and 10.1%, respectively, last year.

The central bank attributed the strong economic growth in non-oil GDP to real estate, construction and manufacturing.

The World Cup in Qatar and other events held in the region also boost tourism in the UAE, it said.

Wam reported that the UAE will further benefit from the presence of a significant private sector, supported by various reforms and strategies to increase foreign direct investment flows and attract the best talent.

It said the banking sector continued to support investment in the sector, with credit to the private sector growing at an annual rate of 4.9 per cent in the fourth quarter of last year.

The UAE’s non-oil foreign trade hit a record 2.23 trillion dirhams ($607.1 billion) last year, as the Arab world’s second-largest economy accelerated steps to reduce its reliance on hydrocarbons and strengthen its global economic partnership.

This is the first time that the UAE’s non-oil foreign trade has crossed the AED2 trillion mark, with the value for the January-December period up more than 17% compared to the same period in 2021.

UAE Finance Minister Mohammad Al-Husseini said on the sidelines of the G20 Finance Ministers and Central meeting that the UAE economy continues to withstand global headwinds, with non-oil economic growth expected to reach 4.2% by the end of the year, Bank Governors in Bangalore, India, said last month.

First Abu Dhabi Bank forecasts real hydrocarbon and non-hydrocarbon GDP growth rates for the UAE this year at 5.4% and 4.7%, respectively.

Emirates NBD expects the country’s GDP to grow by 3.9% by 2023.

UAE government revenue rose about 7% in the fourth quarter of 2022 as it continued to rebound from the coronavirus pandemic, supported by federal initiatives and higher oil prices.

Total revenue climbed to Dh148.1 billion in the three months to the end of December, the finance ministry said.

Business activity in the UAE’s non-oil private sector economy also grew at its strongest pace in four months in February.

The seasonally adjusted S&P global PMI reading climbed to 54.3 last month from 54.1 in January, well above the neutral 50 mark that separates growth from contraction.

Despite the slowdown in the global economy, the UAE’s real estate sector continued to perform strongly in the fourth quarter of last year, posting solid growth in activity.

Activity in the Dubai real estate market reached an all-time high, with the total transaction value reaching AED 214 billion in the fourth quarter, representing an annual growth rate of 169%.

Tourist arrivals to the UAE increase to 14.4 million by 2022, almost double the total number of tourists in 2021.

Meanwhile, Dubai’s hotel occupancy rate rose to 73% last year from 67% in 2021, while Abu Dhabi’s hotel occupancy rate rose to 70% in 2022.

Passenger traffic at Abu Dhabi’s five airports will triple to 15.9 million by 2022 from 5.3 million in 2021, while Dubai Airport handled 21.8 million passengers last year, an 81.3% increase from 2021.
Source: National News



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