The UAE economy is poised for further growth in the latter part of this year, achieving significant advancements and remarkable achievements due to a stable investment and economic environment capable of thriving amidst global economic uncertainties.
The anticipated performance in 2024 builds on last year’s successes, with positive growth rates seen across key macroeconomic indicators.
In 2023, GDP reached AED 1.68T ($436B), marking a growth of 3.6 percent.
Forecasts for the UAE economy in 2024
Meanwhile, non-oil GDP at constant prices stood at AED 1.25T ($408B), growing by 6.2 percent, positioning the national economy fifth globally in the real GDP growth index.
The World Bank predicts a GDP growth of 3.9 percent for the UAE, expected to increase to 4.1 percent by 2025.
Similarly, the International Monetary Fund (IMF) expects the national economy to expand by 4 percent in 2024, driven by strong activity in sectors such as tourism, construction, manufacturing, and financial services.
Dr. Karim El Solh, Co-Founder and CEO of Gulf Capital, believes the UAE economy is on an upward trajectory, bolstered by strong momentum over the past two years.
He commended the UAE government’s proactive measures, including stimulus packages, incentives for foreign investment, and efforts to enhance business environment amidst global economic challenges.
Dr. El Solh highlighted the UAE’s strategic location, robust infrastructure, and business-friendly policies as key factors attracting investors and fostering growth.
He noted that the UAE’s Vision 2030 framework and forward-looking economic policies, focusing on diversification, innovation, and sustainability, have gained international recognition.
This has instilled confidence in the national economy, leading to increased foreign investment, improved credit ratings, and enhanced global competitiveness.
Damian Hitchen, CEO of Saxo Bank in the Middle East and North Africa, expects the UAE economy to grow by over 4 percent in 2024, driven by OPEC’s increased oil production quota and momentum in non-oil sectors.
He highlighted the UAE’s appeal, evidenced by its record $23B in foreign direct investment in 2022, reaching an all-time high.
Additionally, the UAE ranks 14th globally in attracting professional talent, according to the Boston Consulting Group.
Hitchen underscored the pivotal roles of the tourism and aviation sectors in boosting the economy, facilitating trade, and positioning the United Arab Emirates as a global hub for transportation and logistics.
Vijay Valecha, Chief Investment Officer at Century Financial, expects the UAE economy to sustain robust growth exceeding 4 percent this year, supported by strong performances in non-oil sectors.
He stressed the importance of economic diversification away from oil, highlighting sectors such as renewable energy, technology, financial services, tourism, construction, and real estate, collectively contributing over 70 percent to the UAE’s GDP.
Valecha predicted that the United Arab Emirates will lead the Gulf and Arab countries in economic performance in 2024, attributing this to strategic initiatives and forward-thinking policies.
