UAE economy to grow 3.9% in 2024, central bank projects
The UAE economy recorded growth of 3.6% in 2023 year-on-year
Abu Dhabi: The UAE economy grew 3.6 per cent in 2023, the central bank said in its annual report on Thursday, and projected overall output growth at 3.9 per cent in 2024.
Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Minister of the Presidential Court, and Chairman of the Central Bank of the UAE (CBUAE), in his foreword to the CBUAE’s Annual Report 2023, said, “In 2023, we marked the CBUAE’s Golden Jubilee, reaffirming our commitment to fostering sustainability and innovation and keeping pace with the latest global financial, economic, and environmental developments.”
He said, “The CBUAE’s efforts are aligned to the UAE leadership’s targets of mitigating climate change, particularly through the Green and Sustainable Finance Initiative aimed at addressing climate-related risks. Furthermore, the CBUAE united the UAE banking sector to mobilise Dh1 trillion in sustainable finance by 2030, a key announcement made during COP28.
"Looking ahead, the CBUAE remains committed to implementing measures to mitigate climate-related risks and their potential impact on financial stability. This is in addition to continuing to assess the business models of licensed financial institutions (LFIs) to ensure their alignment with the transition towards a green economy.”
The CBUAE also played an active role in advancing the ongoing digital transformation of the country’s financial infrastructure. “We launched Al Etihad Payments (AEP) to manage the digital financial infrastructure and the UAE Domestic Card Scheme (DCS), Jaywan. Additionally, we developed the necessary infrastructure for the launch of the CBUAE’s Central Bank Digital Currency (CBDC) and a new Instant Payments Platform (IPP), Aani, which aims to enhance financial inclusion in the country,” Sheikh Mansour stated.
He also added, “Emiratisation within the financial sector remains a key priority for us. In 2023, we witnessed a significant increase in Emiratisation rates, demonstrated by the successful hiring of 2,720 UAE nationals, exceeding the target of 1,875. The Emiratisation rate in leading jobs in banks has increased by 8 percent to 31 per cent in total.”
- with inputs from WAM