UAE Economy Poised for Significant Growth in Second Half of 2024
Abu Dhabi, The Gulf Observer: The UAE economy is set for substantial growth in the latter half of this year, achieving notable advancements and exceptional accomplishments. This positive outlook is attributed to a stable investment and economic environment that continues to thrive despite global economic uncertainties.
Building on last year’s successes, the UAE’s economic performance in 2024 is expected to show positive growth across various macroeconomic indicators. In 2023, the UAE’s GDP reached AED1.68 trillion, marking a 3.6 percent increase. Meanwhile, the non-oil GDP at constant prices grew by 6.2 percent to AED1.25 trillion, positioning the national economy fifth globally in the real GDP growth index.
The World Bank forecasts a GDP growth of 3.9 percent for the UAE in 2024, which is anticipated to rise to 4.1 percent in 2025. Similarly, the International Monetary Fund (IMF) expects the national economy to grow by 4 percent in 2024, driven by robust activity in the tourism, construction, manufacturing, and financial services sectors.
Dr. Karim El Solh, Co-Founder and Chief Executive Officer of Gulf Capital, expressed confidence in the UAE’s upward economic trajectory, bolstered by strong momentum over the past two years. He praised the UAE government’s proactive measures, such as stimulus packages, foreign investment incentives, and efforts to improve business ease, amid global economic challenges.
In a statement to the Emirates News Agency (WAM), 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 policy, emphasizing diversification, innovation, and sustainability, have gained international acclaim. This has boosted confidence in the national economy, resulting in increased foreign investment, improved credit ratings, and enhanced global competitiveness.
Damian Hitchen, CEO of Saxo Bank in the Middle East and North Africa, projected that the UAE’s economy will grow by over 4 percent in 2024, driven by OPEC’s increased oil production quota and momentum in non-oil sectors. He added that the UAE’s attractiveness is reflected in its record $23 billion 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 also highlighted the crucial roles of the tourism and aviation sectors in boosting the economy, enhancing trade, and transforming the UAE into a global transportation and logistics hub.
Vijay Valecha, Chief Investment Officer at Century Financial, anticipated that the UAE’s economy will sustain robust growth exceeding 4 percent this year, supported by strong performances in non-oil sectors. He emphasized economic diversification away from oil, pointing to sectors like renewable energy, technology, financial services, tourism, construction, and real estate, which collectively drive over 70 percent of the UAE’s GDP. Valecha predicted that the UAE will lead the Gulf and Arab countries in economic performance in 2024, credited to strategic initiatives and forward-looking policies.
