UAE economy hits one of fastest growth rates in the world

The Central Bank of UAE (CBUAE) hints the country's economy will pick up pace and grow at a faster pace next year as both oil and non-oil sectors would perform better.

According to Central Bank’s annual report released on Wednesday, the UAE's gross domestic product (GDP) grew at 7.6% in 2022, one of the fastest growth rates in the world. The growth rate is likely to slow down to 3.9% in 2024 but the pace will pick up again next year and GDP is projected to expand at 4.3%, showed the annual report.

“Real-oil GDP is projected to grow by 3% and 3.5% in 2023 and 2024, respectively. The uncertainty surrounding these projections is high, as they depend on the evolution of the Russia-Ukraine conflict, the heightened risk of a global slowdown, and the possibility of further Opec+ cuts to oil production,” the report said.

While non-oil GDP growth is estimated to have accelerated to 6.6% in 2022 from 5.8% in 2021 due to a variety of factors, including the removal of most Covid-19-related restrictions and resulting recovery in global travel and tourism, the real estate and construction sectors, expanding manufacturing activity, and increased activity associated with world-class events, such as Expo 2020 Dubai and Fifa World Cup in Qatar.

For 2023 and 2024, Central Bank projected real non-oil GDP growth to slow to 4.2% and then accelerate to 4.6%, respectively, in line with global growth trends.