UAE Economy to Grow by 4.3% in 2024, Central Bank Says

The UAE Central Bank expects the country’s economy to grow by 4.3 percent in 2024 and has maintained its growth forecast of 3.9 percent growth for the current year.

The banking regulator projects that the non-oil economy will grow by 4.6 percent and oil gross domestic product by 3.5 percent next year, state news agency Wam reported on Monday.

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

The UAE economy is estimated to have grown by 7.6 percent last year, the highest in 11 years, after expanding by 3.9 percent in 2021, the Central Bank said.

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

The Central Bank attributed the robust economic growth in non-oil GDP to the property, construction, and manufacturing sectors.

The Qatar World Cup and other events held in the region also bolstered the UAE’s travel and tourism industry, it said.

The Emirates is set to benefit further from the presence of a vital private sector, supported by various reforms and strategies to increase foreign direct investment flows and to attract the best talent, Wam reported.

The banking sector continues to support investment in the sector, with credit to the private sector increasing by 4.9 percent on an annual basis in the fourth quarter of last year, it said.

The UAE’s non-oil foreign trade hit a record Dh2.23 trillion ($607.1 billion) last year as the Arab world’s second-largest economy hastened to put in place measures to reduce its dependence on hydrocarbons and boost its economic partnerships globally.

This was the first time the UAE’s non-oil foreign trade crossed the Dh2 trillion mark, with values for the January-December period increasing more than 17 percent from the same period in 2021.

The UAE economy continues to withstand global headwinds and is expected to achieve 4.2 percent in non-oil economic growth by the end of this year, Mohamed Al Hussaini, Minister of State for Financial Affairs, said during a meeting of G20 finance ministers and central bank governors in Bengaluru, India, last month.

First Abu Dhabi Bank forecasts the UAE’s hydrocarbon and non-hydrocarbon real GDP growth at 5.4 percent and 4.7 percent, respectively, this year.

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

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

Total revenue for the three months to the end of December climbed to Dh148.1 billion, the Ministry of Finance 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 purchasing managers’ index reading climbed to 54.3 last month, from 54.1 in January, well above the neutral 50-mark that separates growth from contraction.

The UAE’s real estate sector continued its strong performance in the fourth quarter of last year, achieving solid growth in terms of activity, despite the global slowdown.

The activity in Dubai’s property market reached historic levels, with the total value of deals hitting Dh214 billion in the fourth quarter, an annual increase of 169 percent.

The most expensive villa yet sold in Dubai cost Dh302m ($82.2m). All photos Alpago Properties© Provided by The National

Amenities include a home cinema, bowling alley, gym, hammam, sauna, infinity pool, jacuzzi, and game room.© Provided by The National

Construction of the villa is scheduled to be completed by the first quarter of 2023.© Provided by The National

Management from developer Nakheel attended a private event to mark the record sale. Photo: Alpago Properties© Provided by The National

The number of tourists traveling to the emirate increased to 14.4 million in 2022, almost double the total number of visitors in 2021.

Meanwhile, hotel occupancy in Dubai rose to 73 percent last year, from 67 percent in 2021, while that for Abu Dhabi increased to 70 percent in 2022.

Passenger traffic through the five Abu Dhabi airports tripled to 15.9 million passengers in 2022, up from 5.3 million passengers in 2021, while 21.8 million passengers traveled through Dubai’s airports last year, an increase of 81.3 percent over 2021.

The article was originally published on msn.com

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