World Bank Projects Strong Economic Growth for UAE, Driven by Non-Oil Sectors
The UAE is poised for robust economic growth, with the World Bank forecasting a 3.4% increase in real GDP by 2023 and a further uptick to 3.7% in 2024. The non-oil GDP is anticipated to surge by 4.5% in 2023, driven by key sectors such as tourism, real estate, construction, transportation, and manufacturing. Concurrently, increased capital expenditure is set to contribute to this growth. Meanwhile, oil GDP is expected to grow by 0.7% in 2023, rising to 3.6% in 2024. The World Bank also projects an improvement in the country’s current account balance and a fiscal surplus by 2024.
In addition to economic growth, the report highlights positive trends in the Gulf Cooperation Council (GCC) region. A 1% growth is expected in 2023, with subsequent increases to 3.6% and 3.7% in 2024 and 2025, respectively. This growth is attributed to the non-oil sectors, with a growth rate of 3.9% projected for 2023 and 3.4% in the medium term. The development and diversification of non-oil sectors are expected to positively impact employment opportunities across various sectors and geographic regions within the GCC. The report also applauds Saudi Arabia’s progress in advancing women’s economic empowerment, citing a significant increase in female labor force participation in recent years.