Skip to content Skip to Search
Skip navigation

UAE economy to remain ‘robust’ and grow 4.2% in 2023

By Pramod Kumar
UAE Reuters/Satish Kumar
The UAE's economic growth is likely to remain 'robust', averaging 4.6 percent from 2022 to 2024

The UAE’s economy is forecast to grow at 4.2 percent this year, Arab Monetary Fund (AMF) said in a new report.

The country’s economic growth is likely to remain “robust”, averaging 4.6 percent from 2022 to 2024, driven by rising oil prices and improved business confidence, state-run WAM news agency reported, citing AMF’s “Arab Economic Outlook” report.

However, the consumer price index in the UAE was likely to fall 2.9 percent in 2023 and 2.57 percent in 2024.

With stable oil and gas prices and lower prices for basic goods, such as agricultural products, the report projected a 3.4 percent growth for Arab economies amid tighter monetary policies to tame inflation.

Arab countries with economic reform programmes and strategies to diversify their economies, empower the private sector and invest in human capital are more able to cope with economic shocks, the report added.

AMF said that the economic growth rate of Arab countries will rise to four percent in 2024, mainly due to the expected stability of oil and gas prices, basic goods prices and controlled inflation.

Higher energy prices will boost the economic growth of major Arab oil exporters in 2023 and 2024, with their economies expected to grow by 3.4 percent in 2023 and 4.2 percent in 2024.

Gulf Cooperation Council (GCC) countries have a positive outlook for 2023, with an expected GDP growth of 3.4 percent, driven by their efforts to diversify their sources of income.

Higher oil prices will lead to rise in oil revenues, improved financial outcomes, foreign exchange reserves and fiscal positions, the report noted.

Additionally, promoting workforce localisation and increasing the participation of citizens in the private sector will be a key approach in achieving growth in GCC countries, most notably in the UAE, Saudi Arabia and Bahrain.

AMF said that Arab countries that import oil will see their growth rate increase from 3.1 percent in 2023 to four percent in 2024 after inflation is controlled by 2023-end and monetary policies are eased.

Latest articles

SJP's chief investment officer Justin Onuekwusi, second from right, at the event in Dubai. Other speakers included, from left, Ben Powell of the BlackRock Investment Institute, Angelina Lai of SJP Asia and Middle East, and Robert Willock of the Economist Intelligence Unit

Wealth manager seeks Gulf growth despite setbacks in UK

St James’s Place, the UK’s largest wealth manager, plans to target local customers to expand its one-year-old Gulf operation as it seeks to brush off reputational setbacks in its home market. In February SJP disclosed that it had set aside more than $500 million for potential client refunds after an increase in complaints about its […]

A FlyDubai Boeing 737 Max. The airline's CEO says Boeing is 'fantastic' but he has sent inspectors to the manufacturer's facilities

Boeing’s ‘negative issues’ are top concern for FlyDubai CEO

Escalating regional tensions and recent floods in Dubai have “not especially” affected FlyDubai’s operations, but the low-cost airline’s chief executive said he was closely monitoring US plane maker Boeing’s response to a string of safety scandals.  “We are definitely very concerned about the delays and all the negative issues that are in the pipeline or […]

A KFC outlet in a Dubai mall. It accounts for about two-thirds of Americana's sales, but has been hit by boycotts

Americana profit tumbles as Gaza boycotts hit sales

Americana Restaurants International’s revenue and profit fell again in the first quarter of this year as Mena diners continue to shun western brands in protest at the conflict in Gaza. Americana, which runs 2,456 fast-food outlets across the region, reported a 16.3 percent reduction in revenues year on year, to $493.5 million.  Net profit fell […]

Lucid cut the price of its flagship Air model in February by as much as 10 percent

Lucid cuts electric car prices but posts higher revenue

Saudi-backed US electric vehicle maker Lucid reported first-quarter revenue above analysts’ estimates this week as it sets to produce more cars this year but selling at cheaper prices to spur sales.  The Nasdaq-listed EV company had cut prices of its flagship Air sedans in February by up to 10 percent, as customers globally began to […]