With the testimony of international banks and institutions, the UAE economy is heading towards further growth and recovery during the second half

Abu Dhabi, July 2: The economy of the United Arab Emirates is poised for further growth, recovery and prosperity during the second half of this year, supported by a rich record of economic achievements, despite the geopolitical repercussions the global economy is currently experiencing.

The expected growth of the national economy reflects the depth of the forward-looking vision of the wise leadership, the soundness of the approach taken, the efficiency of the economic initiatives and strategies applied during the last period, and the resilience of the national economy, which has passed the stage of recovery from the effects of the “Covid-19” pandemic and entered the stage of growth and recovery.

The expectations of international institutions and banks indicate that the national economy will witness strong growth, which reflects the strength of the economic policies pursued by the UAE government, and which confirms the strength and solidity of the UAE economy in light of the economic conditions and geopolitical repercussions the world is going through.

For its part, the International Monetary Fund expected the UAE’s total GDP to grow by 3.6% in 2023..while the World Bank expected the non-oil sector in the UAE to achieve strong growth of 4.8% this year due to strong domestic demand, especially in the sectors of tourism, real estate, construction and transportation. and manufacturing industries, which contributes to strengthening the policy of economic diversification by increasing the relative importance of non-oil activities in the national economy, which is consistent with the state’s economic policies to reduce dependence on the oil economy, consolidate the economy based on knowledge and innovation, and promote national non-oil industries.

The expectations of international institutions and banks are in line with the estimates of the UAE Central Bank, which predicted in the quarterly review report for the first quarter issued last June that the country’s gross domestic product would grow by 3.3% in 2023, provided that the growth rate would rise to 4.3% in the next year 2024. With the growth of the non-oil sector by 4.6% and the oil sector by about 3.5%.

The expected growth during the current year is a continuation of the strong performance achieved during 2022 thanks to the rapid and effective response in the face of the “Covid-19” pandemic, and public financial measures that support the business and economy sectors, in addition to activating innovative economic initiatives related to non-oil sectors and activities, which contributed positively to the economy. Enhancing the growth of the country’s gross domestic product.

The Federal Center for Competitiveness and Statistics, preliminary estimates of the UAE’s GDP for the year 2022, indicate the robustness of the country’s economic performance, and its achievement of positive growth rates that exceeded the estimates of analysts and specialized international institutions, as the country’s gross domestic product last year at constant prices reached 1.62 trillion dirhams, achieving growth positive of 7.9%, while at current prices it reached 1.86 trillion dirhams, an increase of more than 337 billion dirhams for the year 2021, achieving a growth of 22.1%.

It is expected that the national economy will continue to grow during the current year for several reasons, including the rise in the purchasing managers’ index to the highest level in five months amid strong growth in new orders and the expansion of purchase stocks to reach their highest rate in five years, in addition to the support of existing and other comprehensive economic partnerships. Which will come into effect during the next stage of the national economy in a large way, in addition to the continued flow of talents and foreign direct investments, which will increase the flexibility of the economy and enhance investor confidence in our innovative economic policies.

And with the UAE moving forward in implementing the comprehensive economic partnership agreements, this will contribute to enhancing trade and integration into global value chains and attracting more foreign direct investment, thus enhancing the growth of the national economy, especially as the country continues to expand its network of trade partners around the world through comprehensive economic partnership agreements. In addition to the presence of talks witnessing remarkable progress with many countries of strategic importance regionally and globally on the map of international trade, including Chile, Costa Rica, the Eurasian Union, Thailand and Ukraine.