Skip to content Skip to Search
Skip navigation

UAE’s non-oil sector forecast to grow by 4.8% in 2023

Shoppers in Dubai Dubai Tourism
UAE non-oil sector growth is driven by tourism, real estate, construction, transportation and manufacturing
  • GCC economies to grow at slower pace this year than last year
  • UAE forecast to grow 3.7% in 2023 compared to 7.6% last year
  • But Emirates witnessed rise in non-oil business activity in April

The UAE’s real GDP will grow by 2.8 percent in 2023, driven by a strong performance by the non-oil sector, according to a World Bank report.

Thanks to strong domestic demand, particularly in tourism, real estate, construction, transportation and manufacturing, the non-oil sector is expected to grow by 4.8 percent.

The current account balance will likely rise to 11.7 percent in 2023, Wam news agency reported, citing the report.

The UAE is also projected to report a surplus in public finances of 6.2 percent this year.

The GCC economies are forecast to grow by 2.5 percent in 2023 and 3.2 percent in 2024. 

The region saw a remarkable GDP growth of 7.3 percent in 2022, fuelled by a substantial increase in oil production.

Last month a Reuters poll found that the GCC economies will grow at a slower pace in 2023 than last year as expectations for muted gains in crude prices and oil production cuts take a toll on revenues.

Saudi Arabia will expand 3.2 percent this year, less than half 2022’s decade-high pace of 8.7 percent, according to the April 6-25 Reuters poll of 16 economists.

The UAE, the second biggest economy among GCC members, will grow 3.7 percent in 2023 and 4 percent next year, significantly lower than 7.6 percent last year.

However, S&P Global UAE Purchasing Managers’ Index (PMI) found that the UAE witnessed its fastest growth in new business for 18 months in April, spurring a rise in non-oil business activity nationwide.

The seasonally adjusted PMI for April hit 56.6, up from 55.9 the previous month, the highest in six months and just short of the post-pandemic peak of 56.7 recorded in August last year.

The survey revealed increased optimism among UAE businesses, reaching the highest level for seven months, buoyed by improving economic conditions, increased construction activity and greater marketing spending.

Latest articles

City, Urban, Architecture

Dubai company to launch 100 flying cars in Mena

Dubai-headquartered Aviterra has signed a deal with a Dutch company to launch flying cars across the Middle East and Africa. The aviation company will buy more than 100 Liberty flying cars from Pal-V and invest in the Netherland-headquartered flying car maker to make door-to-door mobility a reality in the region. “The PAL-V is the perfect tool for […]

Emirati director Nayla Al Khaja. Her film 'Three' is currently being shown in UAE theatres in Mandarin using Camb.ai's AI translation programme

Dubai startup helps AI-voice cloning take centre stage

A YouTube video released in January of Novak Djokovic shows the tennis star speaking fluent Spanish at a post-match press conference.  While the Serbian champion is renowned for speaking several languages, in this case his voice was created by an artificial intelligence tool developed by a Dubai-based startup, Camb.ai. The original Djokovic footage was taken […]

Acwa Power to build $800m desalination plant in Senegal

Acwa Power, Saudi Arabia’s operator of power generation and desalinated water production plants, will construct a SAR3 billion ($800 million) desalination plant in Dakar, Senegal. The company signed an agreement with Senegal’s ministry of water and sanitation and state-backed National Water Company, to build a 400,000 cubic metres per day desalination plant in Dakar. The […]

Alec IPO SeaWorld Abu Dhabi

Alec IPO could start listings rush in construction sector

A listing by Dubai’s Alec Engineering and Contracting could open the gates for more construction-related companies to go public as they take advantage of the country’s buoyant property market, according to a business expert. Alec, which is backed by the Investment Corporation of Dubai (ICD), the emirate’s sovereign wealth fund, is behind some of the […]