The UAE economy grew by 4.3% year over year in Q4-2023, surpassing the 2.5% increase observed in Q3-2023.

Abu Dhabi: The UAE’s real GDP is expected to grow by 3.9% in 2024 and 6.2% in 2025, according to the Central Bank of the United Arab Emirates (CBUAE), which also predicted that the nation’s robust foreign trade performance would continue in 2024 and 2025.

The country’s non-hydrocarbon GDP growth is predicted to remain strong at 5.4% in 2024 and 5.3% in 2025, according to the apex bank’s June 2024 Economic Quarterly Review. The hydrocarbon sector is expected to grow by 0.3% in 2024 and then by 8.4% in 2025.

The UAE economy grew by 4.3% YoY (Year-on-Year) in the fourth quarter of 2023, surpassing the 2.5% growth seen in the third quarter of 2023. The acceleration of non-hydrocarbon growth, which makes up around 75% of GDP, and the improved performance of the hydrocarbon sector are the two main causes of the quarterly gain.

The most recent data also revealed that, despite a 13.9% decrease in overall revenue to Dh526.1 billion (or 27.9% of GDP), the consolidated fiscal balance in 2023 remained positive at Dh85.6 billion, or 4.5% of GDP.

According to the CBUAE, indicators show that the private non-oil sectors are experiencing strong economic activity. The UAE’s Purchasing Managers’ Index (PMI), which measures corporate confidence about economic prospects, was reported to be 55.3 in April 2024. This optimistic attitude stems from the anticipation of continued strong demand and sales, which should sustain steady output growth. The hope for new projects and investments lends even more credence to this.

In April 2024, Dubai’s PMI of 55.1 indicated continued expansion in the non-oil private sector of the emirate.

The numbers show that in April 2024, the average employee pay and the number of workers covered by the CBUAE Wage Protection System (WPS) increased by 9.4% and 7.5% YoY, respectively. Positive estimates on employment and pay growth suggest that future GDP growth will be sustainable and domestic consumption will be strong.

According to the research, the real estate, tourism and hospitality, and transportation sectors together account for almost 30% of the non-oil GDP.

According to estimates, the number of residential real estate sales transactions in Abu Dhabi between January and April 2024 increased by 7.7% year over year. Ready unit sales, which rose by 24.9 percent year over year, were the main driver of growth, with off-plan sales growing by just 0.8 percent.

According to data for Q1-2024, Dubai continued to be a leading global hub for tourism. The percentage of hotel rooms occupied in the emirate was 83%, which is the same as the numbers from the previous year. The average length of stay for each tourist remained relatively constant at 3.9 nights, but the overall number of occupied room nights increased by 2% year over year to 11.2 nights.

In addition, Dubai had an 11% increase in visitor arrivals in the first three months of 2024 compared to the same time the previous year, capitalizing on the rebound in demand for travel throughout the globe. The emirate saw 5.2 million foreign overnight visitors during this time, up from 4.7 million during the first quarter of the prior year.

In the first quarter of 2024, Zayed International Airport handled over 6.8 million passengers who utilized its brand-new, state-of-the-art amenities and services in Abu Dhabi. This highlights Abu Dhabi’s standing as a significant hub for transportation, as evidenced by the 36% rise in passengers from the first quarter of 2023.

Dubai International Airport had a fantastic start to 2024, with its busiest quarter ever, demonstrating the airport’s significance as a hub for international aviation and a major driver of Dubai’s economy. With 23 million passengers using its facilities in the first quarter, there was a notable surge in passenger traffic. This is an 8.4% increase over the same time last year, highlighting its close ties to important international markets and its contribution to enhancing Dubai’s standing as a top travel and business destination.

Dubai authorized an ambitious Dh128 billion proposal for a new passenger terminal at Al Maktoum International Airport, enhancing its standing as a major worldwide hub for transport and tourism. With this development, Dubai’s main international airport will become five times larger, making it the largest in the world in terms of both size and capacity, with the ability to handle up to 260 million passengers a year.

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Source Gulf News 24 June 2024

 

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