UAE economy set for more growth in the second half of this year
Expected performance in 2024 is a continuation of last year's successes
The UAE economy is set for more growth in the second half of this year, achieving qualitative leaps and exceptional accomplishments thanks to a stable investment and economic environment capable of continuing to prosper despite global economic uncertainties.
The expected performance in 2024 is a continuation of last year's successes, with positive growth rates across macroeconomic indicators. GDP reached Dh1.68 trillion in 2023, growing by 3.6 per cent.
Meanwhile, the non-oil GDP at constant prices was Dh1.25 trillion, growing by 6.2 per cent, placing the national economy fifth globally in the real GDP growth index.
The World Bank forecasts a GDP growth of 3.9 per cent for the UAE, which is expected to rise to 4.1 per cent in 2025. Meanwhile, the International Monetary Fund (IMF) expects the national economy to grow by 4 per cent in 2024, driven by strong activity in the tourism, construction, manufacturing, and financial services sectors.
Dr. Karim El Solh, Co-Founder and Chief Executive Officer of Gulf Capital, believes the UAE's economy is on an upward trajectory, bolstered by strong momentum over the past two years. He commended the UAE government's proactive measures, such as stimulus packages, foreign investment incentives, and efforts to improve business ease, amid global economic challenges.
In a statement to the Emirates News Agency (WAM), Dr. El Solh highlighted the UAE's strategic location, robust infrastructure, and business-friendly policy as key factors attracting investors and fostering growth.
El Solh noted that the UAE's Vision 2030 framework and forward-looking economic policy, emphasising diversification, innovation, and sustainability, have gained international acclaim. This has boosted confidence in the national economy, resulting in increased foreign investment, improved credit ratings, and enhanced global competitiveness.
Damian Hitchen, CEO of Saxo Bank in the Middle East and North Africa, expected the UAE's economy to grow by over 4 percent in 2024, driven by OPEC's increased oil production quota and momentum in non-oil sectors.
He added that the UAE's attractiveness is reflected in its record $23 billion in foreign direct investment in 2022, reaching an all-time high. Additionally, the UAE ranks 14th globally in attracting professional talent, according to the Boston Consulting Group.
Hitchen highlighted the crucial roles of the tourism and aviation sectors in boosting the economy, enhancing trade, and transforming the UAE into a global transportation and logistics hub.
Vijay Valecha, Chief Investment Officer at Century Financial, anticipated the UAE's economy will sustain robust growth exceeding 4 percent this year, supported by strong performances in non-oil sectors.
He underscored economic diversification away from oil, emphasising sectors like renewable energy, technology, financial services, tourism, construction, and real estate, which collectively drive over 70 per cent of the UAE's GDP. Valecha predicted the UAE will lead the Gulf and Arab countries in economic performance in 2024, credited to strategic initiatives and forward-looking policy.