IMF says the UAE continues to enjoy a positive economic outlook, bolstered by robust domestic activity. The overall Gross Domestic Product (GDP) is projected to expand by 3.6 percent in 2023….reports Asian Lite News
The International Monetary Fund (IMF) said on Monday that the UAE’s economic outlook remains positive, supported by strong domestic activity with the overall Gross Domestic Product (GDP) projected to grow at 3.6 per cent in 2023.
The Executive Board of the IMF said: “UAE economic growth strengthened in 2022, benefitting from a rapid and effective Covid response, supportive fiscal measures and the benefits of earlier social and business-friendly reforms.”
The IMF’s directors forecast 3.8 per cent surge in non-hydrocarbon growth driven by continued tourism activity and increased capital expenditure.
The UAE’s GDP in 2022 at constant prices totalled AED1.62 trillion, achieving a positive growth of 7.9 percent, while totalling AED1.86 trillion at current prices, an increase of more than AED337 billion compared to 2021, achieving a growth of 22.1 percent.
The IMF board estimated the country’s overall growth in 2022 to reach 6.9 per cent, with non-hydrocarbon GDP growth of 5.3 per cent while hydrocarbon GDP is expected to grow by 11.1 per cent. Inflation has risen with global trends but is expected to ease to 3.4 percent in 2023.
AD’s non-oil economy at 9-year high
Statistics Centre – Abu Dhabi (SCAD) has released estimates showing that Abu Dhabi’s GDP grew by 3.9 percent in the first quarter of 2023 compared to the same period in 2022. This growth was driven by the robust performance of non-oil economic activities in the emirate.
The statistics indicate a remarkable 6.1 percent growth in non-oil GDP during the first quarter of 2023, propelled by exceptional performances in construction, wholesale and retail trade, transportation and storage, and financial and insurance services. This growth reflects the successful integration of various economic sectors, as a result of the relentless and continuous efforts to maintain the emirate’s economic diversification.
According to estimates, the non-oil GDP (at constant prices) surpassed the highest quarterly value of the past nine years, reaching AED 146 billion in the first quarter of 2023 compared to AED 137.7 billion in the first quarter of 2022, as the total GDP reached AED 276.6 billion. This outstanding growth brought the contribution of non-oil activities to the total GDP to its highest level in eight years at 52.8 percent.
Growth in Construction Sector
According to the data, the construction activities have demonstrated exceptional performance, achieving the highest quarterly growth rates in nine years during the first quarter of 2023 and the fourth quarter of 2022 in a row. The growth rates stood at 14.4 percent and 14.5 percent respectively, compared to the corresponding periods in the previous year.
This impressive growth is attributed to the sector’s appeal to both local and foreign investments, as well as its ability to achieve high completion rates, with a notable increase of 37 percent in the number of newly completed buildings. As a result, the construction sector contributes 8.5 percent to the gross domestic product of the Emirate of Abu Dhabi during the first quarter of 2023.
Financial and Insurance Activities
Statistical estimates reveal a remarkable growth of 11.5 percent in the financial and insurance sector during the first quarter of 2023, compared to the same period last year. This growth reflects the strong performance of the banking sector, with some banks reporting net profits exceeding 50 percent during this quarter. Statistical data indicates that the financial and insurance sector contributes 6.3 percent to the GDP of the Emirate of Abu Dhabi in the first quarter of 2023, highlighting the significant confidence in the local economy.
Wholesale and Retail Trade
According to the statistical results published by the Statistics Centre – Abu Dhabi, the wholesale and retail trade sector in Abu Dhabi has sustained expansion, with a notable growth of 13.9 percent during the first quarter of 2023 compared to the same period in 2022. The added value of this sector reached its highest quarterly level in the past nine years, contributing 6 percent to the gross domestic product, showcasing the remarkable growth witnessed by the local markets in the Emirate.
It is worth noting that Abu Dhabi’s economy achieved the highest growth rates in the Middle East and North Africa region in 2022. During this period, the GDP recorded an impressive growth of 9.3 percent, showcasing consistent growth, and reaffirming the leading position of the Emirate of Abu Dhabi, due to its competitiveness and favourable investment climate, which continues to attract businesses and investors.