UAE’s Economic Surge
The UAE is poised for a significant economic upswing, targeting a doubled growth of 4.8% in 2024, propelled by a flourishing non-oil sector and substantial oil revenues. The ICAEW and Oxford Economics report underscores the nation’s fiscal strength, with fiscal surpluses exceeding 9% of GDP in 2022 and a resilient non-oil sector driving a 3.7% YoY GDP growth in Q2 2022. Despite global economic challenges, the UAE Central Bank maintains stability, holding the benchmark interest rate at 5.4%.
The Purchasing Managers’ Index (PMI) surged to 57.7 in October 2023, signaling robust economic performance post-COVID-19. OPEC recognizes the UAE’s dynamic non-oil sectors, forecasting continued growth into 2024. The report envisions UAE’s oil output at a robust 3.35 million barrels per day in 2024, emphasizing sustainability initiatives post-United Nations Climate Change Conference (COP28). The successful sovereign bond sale and upcoming integration into the BRICS block further bolster economic prospects, enhancing trade diversification and investment opportunities. The UAE’s strides in green sukuk financing align with a commitment to sustainable projects and a net-zero transition, intensifying post-COP28.