The economy of the United Arab Emirates is poised for further growth during the second half of this year, achieving qualitative leaps and exceptional achievements thanks to the stable investment and economic environment capable of continuing prosperity, despite the uncertainty in the global economy.
The expected performance in 2024 comes as a continuation of last year’s series of successes, after the national economy recorded positive growth rates at the level of overall indicators, supported by innovative and diverse initiatives that played a pivotal role in pushing the wheel of comprehensive economic development towards further growth enhanced by supportive legislative and regulatory measures, and continuous efforts. To develop economic sectors.
Official statistics indicate that the UAE’s GDP at constant prices during 2023 will reach about 1.68 trillion dirhams, with a growth of 3.6%, while the non-oil GDP at constant prices reached 1.25 trillion dirhams, with a growth of 6.2%, placing the national economy in fifth place in the world in the growth index. Real economic GDP.
International institutions and banks confirm the optimistic expectations for the national economy, as the World Bank believes that the UAE is preparing to be the best performing economy in the Gulf Cooperation Council countries this year, with an expected GDP growth of 3.9%, rising to 4.1% next year 2025, while the International Monetary Fund expects the national economy to grow by 4% in 2024, supported by strong activity in the tourism, construction, manufacturing and financial services sectors.
– Economic incentives
Dr. Karim Al-Solh, co-founder and CEO of Gulf Capital, believes that the UAE’s economy continues its growth process in an upward direction after achieving strong momentum during the past two years, indicating that the country’s government was the first to implement many incentives to support economic growth in this stage. The world is witnessing economic challenges. He added in a statement to the Emirates News Agency, WAM, that the UAE’s initiatives included stimulus packages to support companies, incentives for foreign investment, and initiatives to enhance the ease of doing business, indicating that the UAE possesses many ingredients that qualify it to achieve further growth and prosperity, most notably its strategic geographic location. Its strong infrastructure and business-friendly policies contribute to attracting investors and companies seeking stability and growth opportunities.
Al-Solh points out that the UAE government has embarked on an ambitious diversification campaign within the framework of Vision 2030, and has adopted strong, forward-looking economic policies that give priority to economic diversification, innovation and sustainability, which has received positive attention from financial institutions and international banks, which has increased levels of confidence in the national economy. This is reflected in increased foreign investment, improved credit ratings, and enhanced competitiveness on the global stage.
– Strong momentum
Damien Hitchen, CEO of Saxo Bank MENA, expects the UAE economy to continue to achieve strong economic growth rates of more than 4% in 2024, and this optimism is reinforced by OPEC’s recent decision to increase the UAE’s daily share of oil production, in addition to the significant momentum witnessed by the non-oil economic sectors. Damien points out that the UAE is achieving increasing attractiveness according to many indicators, as it succeeded in attracting foreign direct investment amounting to $23 billion in 2022, reaching its highest level ever, while the country ranks 14th globally in attracting professional competencies, according to the Boston Consulting Group. He believes that the tourism and aviation sectors contribute decisively to supporting the UAE’s economy, with millions of tourists flocking to the country annually, which increases spending and consumption rates, noting that the aviation sector also plays a vital role in enhancing trade and foreign investment, and contributes to transforming the UAE into a global hub for providing transportation and logistics services.
– Positive path
For his part, Vijay Valesha, chief investment officer at Century Financial, expects that the UAE economy will maintain strong growth during the current year at rates exceeding 4% according to the expectations of banks and international institutions, supported by the positive performance of various sectors, especially non-oil sectors. Valesha believes that there are major factors driving the growth of the national economy, as the economic diversification strategy away from oil is an essential element, with a focus on sectors such as renewable energy, technology, financial services, tourism, construction and real estate, which represent more than 70% of the UAE’s gross domestic product. Valisha points out that expectations are that the UAE economy will achieve the best economic performance among the Gulf states and Arab countries during 2024, thanks to its strategic initiatives and future policies.
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