The UAE’s Central Bank (CBUAE), the country’s economy is projected to achieve a year-on-year growth of 3.3 percent in 2023. This follows a growth rate of 3.8 percent recorded in the first quarter (Q1) of the same year.
According to the Bank’s Q2 2023 report, the forecast for the country’s economy in 2024 remains at 4.3 percent growth. This projection is in line with the expected growth in both the oil and non-oil sectors.
The non-oil GDP is anticipated to grow by 4.5 percent by the end of 2023, and further increase to 4.6 percent by the end of 2024, WAM reported.
Read more: IMF positive outlook on UAE economy
Regarding oil GDP, the Bank predicted a growth of 3.5 percent in the upcoming year 2024. This rebound is expected as production resumes and OPEC+ cuts are eased.
Findings revealed that non-oil GDP growth stood at 4.5 percent year-on-year during the first quarter of this year, noting that the construction sector grew year-on-year by 9.2 percent, wholesale and retail trade by 5.4 percent, transport and storage by 10.9 percent, and housing and food services by 7.8 percent.
As per the report, the non-oil private sector economic activity demonstrated remarkable resilience, with the UAE purchasing managers’ index (PMI) reaching 56.9 in June. This marks the highest level since June 2019 and represents an increase from 55.5 in May 2023. The rise can be attributed to new orders from abroad, driven by competitive prices and promotional sales.
Significant milestone
In August, CBUAE announced that its foreign assets had surpassed AED 592 billion ($161 billion) by the end of the first half (H1) of 2023, marking a significant milestone.
The bank highlighted that the assets of the UAE banking sector experienced a 12 percent growth, reaching AED3.873 trillion during H1 2023.
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