The UAE has experienced substantial economic growth. Government policies, investment levels, changes in global economic conditions, and a variety of other factors can all have an impact on GDP growth. It’s also worth mentioning that economic forecasts are frequently subject to adjustment when new data becomes available, and actual results may differ from expectations. The economic growth is mainly attributed to improvement in non-oil sectors, including property, construction, and manufacturing sectors.
ABU DHABI: The Central Bank of the United Arab Emirates forecasts 4.3 percent annual real GDP growth in the country in 2024. “Following three quarters of robust growth, the UAE’s economy maintained a solid footing in Q4 2022, indicating excellent performance in both the oil and non-oil sectors,” the central bank said in its fourth quarterly economic review.
Growth is expected to be 7.6% for the entire year. The CBUAE’s prediction for 2023 remains steady at 3.9%. While oil production is expected to slow in accordance with the OPEC+ agreements, the non-oil sector is expected to continue to support aggregate output, albeit at a slower pace. “In Q4, oil production averaged 3.1 million barrels per day, and the UAE hydrocarbon GDP is estimated to have grown by 10% year on year, in line with OPEC+ agreements (10.1% in 2022).”
Meanwhile, and following the previous quarter’s impressive growth, the non-oil sector is expected to rise at a similar rate in Q4 2022. According to the analysis, the CBUAE projects 6.6% non-oil GDP growth in 2022.
The estate and building sectors, as well as a vibrant manufacturing sector, such as refineries and aluminum production, were recognized as the major drivers of this good performance by the bank. The central bank stated that oil and non-oil exports, real estate and construction sectors, as well as the influence of the 2022 World Cup in neighboring Qatar, would fuel economic growth.
The UAE’s growth is expected to continue as it implements reforms and strategies to increase FDI flows and attract talent. The country’s economic growth rate in 2022 was 7.6%, the highest in 11 years. Non-oil GDP increased by 6.6% and oil GDP increased by 10.1%, respectively. Non-oil foreign trade reached a new high of $607.1 billion (AED2.23 trillion). This was the first time the UAE’s non-oil foreign trade exceeded AED2 trillion.