The UAE’s real gross domestic product (GDP) growth is projected to accelerate to 3.9% in 2024, fuelled by OPEC+’s announced significant oil production hike in the second half of 2024 and a recovery in global economic activity.
According to the Spring 2024 Gulf Economic Update (GEU) issued by the World Bank, the oil output growth is projected to reach 5.8% in 2024. Non-oil output will remain robust and continue to support economic growth in 2024, expanding at 3.2%, driven by strong performance in the tourism, real estate, construction, transportation and manufacturing sectors.
A key highlight from the report underscores the UAE’s solid current account surplus, which stands at 9.1% of GDP. This surplus is buoyed by the steady uptick in non-oil exports, particularly in tourism and commercial services, alongside burgeoning trade relationships with key markets across Asia and Africa.
The report highlighted the continued strength of financial reserves in most GCC countries in 2023, noting that the UAE recorded significant growth throughout the year, state news agency WAM reported. It emphasised that the substantial improvement in the external balances of GCC countries over the past decade, primarily driven by the oil and gas sector and the expansion of non-oil exports, has kept financial reserves at comfortable levels.
In terms of strategic initiatives, the UAE has greenlit a substantial $10 billion investment in tourism infrastructure and initiated the formation of a sizable public-private partnership portfolio valued at $10.9 billion. Additionally, the country is actively pursuing structural reforms and strategic investments to diversify its economy and bolster industrial capabilities. Key initiatives include Abu Dhabi’s $10 billion investment in tourism infrastructure, ADNOC Gas’s $13 billion gas expansion plan, and the approval of a large public-private partnership portfolio in Dubai.
The report confirmed that the UAE also experienced a recovery in employment to pre-pandemic levels. Additionally, the Emiratisation strategy is being reinforced with a new budget of $1.74 billion aimed at integrating 36,000 citizens into the private sector by 2024.
