The Organization of the Petroleum Exporting Countries (OPEC) reported that the UAE economy continues to demonstrate considerable growth, particularly within its non-oil sectors such as real estate, tourism, and manufacturing.
In its August 2024 Monthly Oil Market Report (MOMR), OPEC noted that the housing, water, electricity, gas, and other fuels sector – comprising over 40 percent of the Consumer Price Index (CPI) – experienced a slight increase, reaching 6.7 percent year-over-year (YoY) in June, up from 6.6 percent in May.
Food and beverage inflation remained relatively stable, with a minor uptick to 2.4 percent YoY in June, up from 2.3 percent YoY in May.
The report noted that regarding international economic relations, the UAE Central Bank recently signed currency swap agreements with Ethiopia, the Seychelles, and Indonesia. These agreements are designed to facilitate cross-border transactions and enhance payment system cooperation.
Furthermore, the UAE finalized a Comprehensive Economic Partnership Agreement (CEPA) with Mauritius, aimed at eliminating tariffs and boosting trade. This CEPA further strengthens the UAE’s business and diplomatic ties in Africa and is expected to support economic diversification efforts, particularly in the non-oil sector.
The UAE’s robust economic policies and strategic international partnerships position the country to sustain its upward economic trajectory and continue diversifying its economy.
Read more: UAE: OPEC+ eager to achieve stability, balance in the energy sector
In June 2024, OPEC highlighted that the UAE continued to demonstrate growth in its non-oil sectors, recording a 6.7 percent expansion in the fourth quarter of 2023, up from 5.8 percent in Q3 of 2023.
The OPEC report also cited S&P Global’s PMI for the UAE which indicated that this ongoing growth, particularly in the manufacturing sector, was due to a 51 percent increase in the issuance of new industrial licenses in 2023.
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