UAE Central Bank Sees GDP Growth At 7.6% This Year, 3.9% In 2023
The UAE central bank has increased the projection for GDP growth to 7.6% from 6.5% and all this is majorly from the non-oil sectors. UAE has been leaping ahead of most of the other countries in terms of economic growth and even amidst the post-covid phase.
The non-oil economy of UAE shows great promise and the service sectors like tourism, transportation, hospitality, etc. are stronger than ever before. According to new estimates by the central bank of UAE, the non-oil sector is estimated to create a growth of 6.1 %, and the oil sector is expected to increase to 11 percent when this year concludes.
Real GDP was expected to grow 3.9% in 2023
The real GDP projection for next year is at 3.9 percent and it has been projected at a lower rate than this year because of the economic instabilities in the global market. To reach the goal of expanding the UAE economy to Dh3 trillion by 2031, the annual rate of growth should be around seven percent.
The International Monetary Fund observed that the Emirate nation was able to keep steady growth because of foreign investments. The investors had confidence in the economy of UAE because of how it handled the post-covid economic management and came out with inspiring results.
The business investments and service sector-based growth is set to be the two strong pillars on which the UAE economy is going to support itself for the coming year too. Most International financial organizations are projecting a good start for the UAE in 2023 when compared to other major economies like the US.
The deviation of the UAE economy from crude oil as a form of major income has been one of the chief strategies. This is part of a bigger goal where the UAE hopes to reduce its oil dependency in the years to come. The future holds very few opportunities for an economy dependent on oil as its major source of income.
This is the reason why the UAE is diversifying its economic strategies to create a multifarious design that can bring in growth from different aspects of the economy other than just oil. Technological investments, tourism development, real estate development, etc. are some of the core features that contribute to this kind of economy.
The UAE had also renewed its visa policies, allowing more liberal opportunities for people planning to shift to the UAE for work. Financial experts are also observing the new move by the UAE to sign the Comprehensive Economic Partnership Agreement (CEPA) with major countries like Indonesia, Israel, and India.
CEPA will pave the way for more expansive trade partnerships with other nations on mutual interest and trade commitments. This will widen the investment prospects of the nations involved in trade transactions and can contribute immensely to individual economies.
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The job opportunities of local citizens will improve and with it the general quality of life. CEPA has the potential for fostering a progressive investment model among nations that prefer to conduct bilateral trade that will improve the economic and social conditions providing prosperity and security to the citizens.
UAE has also seen an increase in bilateral trade with Turkey, Egypt, and Israel. In 2022, UAE also held some major global events like the Dubai Expo 2020 and Gitex Tech Exhibition which garnered a lot of international attention and tourist visits.
The upcoming Dubai Shopping Festival will also be another global platform that will increase the influx of tourists to Dubai. The private sector in the UAE is also another major contributor to the economy and recently they have also aligned with the sustainability goals of the UAE administration. 2022 ends on a positive note for the Emirates as the next year holds better prospects.
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