The Organization of Petroleum Exporting Countries (OPEC) stated that non-oil economic activities in the UAE have continued their strong performance. In its December report, OPEC said that the UAE “economy demonstrated strong underlying dynamics.” This has resulted in economic growth of 3.7 percent year-on-year in 2023.
Non-oil activities
in addition, OPEC expected that the upward trajectory in non-oil activities will continue. It will contribute to the UAE’s continued growth next year.
“Prospects for the UAE’s non-oil GDP indicate ongoing momentum, supported by increased business confidence, government reforms, and an expansion in household spending,” the report stated.
Moreover, it noted that the recent Purchasing Managers’ Index (PMI) for November and October confirmed the continued strength of the non-oil sectors in the UAE. The PMI registered 57.7 in October, reaching its highest level since the outbreak of COVID-19 in 2020. After that, it remained almost unchanged at 57 in November.
Read: Oil prices remain resilient following a six-month low
Oil cuts until March
Earlier, Prince Abdulaziz bin Salman, Saudi Arabia’s minister of energy, announced that OPEC+ may proceed with oil cuts beyond the first Q1 of 2024 if the need arises. He added that OPEC+ will fully adhere to the production cuts.
OPEC+ oil producers agreed last week to voluntary production cuts totaling about 2.2 million barrels per day early next year.
Additionally, in a statement to Bloomber, bin Salman explained that production cuts of more than two million barrels per day were announced last week. However, they will be withdrawn only after considering market conditions, and by using a “gradual approach.”
Saudi Arabia announced the extension of the voluntary reduction in oil production of one million barrels per day, which began last July, until the end of the first quarter of 2024.
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