UAE's Economic Growth Outlook Strong, Fueled by Non-Oil Sectors

UAE's Economic Growth Outlook Strong, Fueled by Non-Oil Sectors

By Staff Writer, 04 January 2024

According to analysts from a prominent global bank, the United Arab Emirates (UAE) is poised for robust economic growth over the next couple of years, driven predominantly by its export-focused non-oil sectors.

In the Middle East 2024 Outlook report by MUFG, Ehsan Khoman, Head of Research – Commodities, along with analyst Ramya RS, highlighted the UAE's economic prospects.

The duo expressed optimism regarding the UAE's future, emphasizing that the nation's well-developed infrastructure does not necessitate massive capital expenditures comparable to those required for stimulating growth in Saudi Arabia.

They pointed out that the UAE's service exports play a pivotal role in driving growth, especially as global travel and tourism demands have surpassed pre-pandemic levels.

Based on the bank's research, the UAE is expected to witness a real gross domestic product (GDP) growth rate of 4.0% in 2024, following a 3.4% growth in 2023.

This growth trajectory will elevate the nation's economy from $509.2 billion in 2023 to an estimated $536.8 billion in 2024, further expanding to $561.2 billion by 2025.

Moreover, the per capita GDP, a crucial economic metric indicating a country's economic output per individual, is projected to increase. MUFG research anticipates the UAE's per capita GDP to rise from $50,602 in the previous year to $52,407 in 2024, further climbing to $53,813 by 2025.

The Central Bank of the UAE revised its 2024 growth forecast from 4.3% to an even more optimistic 5.7%, aligning with the Opec+'s decision to boost oil production significantly.

Both the International Monetary Fund (IMF) and the World Bank estimate the UAE's 2024 real GDP growth at around 4.0%.

Additionally, the IMF anticipates the UAE's current account balance to constitute approximately 7.7% of its GDP in 2024.

Issac John / Khaleej Times

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