The Central Bank expects the UAE economy to grow by 4.3% in 2024

Abu Dhabi, March 27/ The Central Bank of the Emirates maintained its forecast for the growth of the country’s total real GDP at 3.9% in 2023, rising to 4.3% in the next year 2024.
The Central Bank said, in its quarterly review report for the fourth quarter of last year 2022, that the UAE economy maintained its strong position in the fourth quarter of last year after three quarters of high growth, which reflects the strong performance of the oil and non-oil sectors.
The Central Bank expected the UAE’s GDP to grow over the whole of 2022 by 7.6%, with non-oil GDP growing by 6.6% and oil GDP growing by 10.1%.
The Central Bank stated that expectations suggest that the UAE’s GDP will grow by 3.9% in 2023, with non-oil growth by 4.2% and oil GDP by 3%, while the UAE’s GDP is expected to grow by 4.3% in 2024, with an increase in output. Non-oil growth by 4.6% and oil output growth by 3.5%.
The Central Bank attributed the strong growth to the non-oil domestic product, with major support from the real estate and construction sectors, and the manufacturing sector such as refineries and aluminum production, in addition to the World Cup in Qatar and other global events that were held in the region and contributed to the promotion of travel and tourism to the UAE.
The Central Bank report indicated that the UAE will benefit from the presence of a vital private sector, supported by various reforms and strategies to increase foreign direct investment flows and to attract the best talents, and the banking sector continues its role in supporting investment in the sector, as credit to the private sector increased by 4.9% on an annual basis in the quarter. Fourth of last year.
He pointed out that the purchasing managers’ index in the Emirates rose for the twenty-fifth month in a row, to reach 54.2 last December, while the average was 55.3 for the year 2022, while the composite index of business confidence, based on a questionnaire prepared for the Northern Emirates, scored 119.4 points for the fourth quarter of 2022. Up from 109.8 in the previous quarter, indicating a positive business outlook and continued improvement.
The report added that the small and medium-sized companies index showed an expansion in the fourth quarter of 2022, increasing by 12.4 points, with the large company index improving significantly by 7.8 points, in all measures, including quantities, prices, profits, employment and new purchase orders.
He pointed out that domestic consumption continued its strength during the fourth quarter of 2022, supported by the significant increase in employment, as the average total amount for a period of 3 months for people working in the UAE and the wages paid in the private sector recorded a decimal growth on an annual basis in the fourth quarter of 2022, higher than pre-COVID-19 levels.
He explained that the UAE real estate sector continued its strong performance in the fourth quarter of 2022, achieving strong growth in terms of activity despite the global slowdown. apartment) in Abu Dhabi in the last three months of the year, the highest number since the start of the pandemic.
He pointed out that the activity in the real estate market in Dubai reached historic levels in the fourth quarter of 2022, when the value of deals reached 214 billion dirhams, an increase of 169% over the previous quarter, while the number of deals increased by 52% on a quarterly basis, indicating that The Emirate of Dubai remains one of the most attractive investment destinations in the world, due to the UAE’s stable economy, strong financial fundamentals and ability to find growth opportunities.
The report of the Central Bank stated that the performance of the tourism and hospitality sector in the country was exceptionally strong in the fourth quarter of last year, and the demand for hotels rose at the end of the year in Dubai and Abu Dhabi against the backdrop of multiple events in the region, including “Formula 1” in Abu Dhabi and the World Cup. football in Qatar.
He pointed out that the number of tourists traveling to Dubai reached 14.4 million in 2022, as this represents nearly double the total number of visitors who arrived during 2021, and the occupancy rate for hotels in Dubai increased to 73% in 2022 from 67% in 2021. Meanwhile, the occupancy rate in Abu Dhabi increased to 70% in 2022, and the number of hotel guests increased by 24% to reach 4.1 million during the same period.
The report pointed out that the last quarter of last year witnessed the highest traffic in the country’s airports, especially in the emirates of Abu Dhabi and Dubai, as a result of the seasonal influx of visitors and people attending multiple major events in the region, as passenger traffic through the five Abu Dhabi airports tripled to 15.9 million passengers. In 2022, up from 5.3 million passengers in 2021, while 21.8 million passengers traveled through Dubai airports in 2022, an increase of 81.3% compared to 2021.