UAE raises economic growth forecast to 5.7% in 2024

UAE Central Bank revised its 2023 growth forecasts from 3.3% in previous forecasts to 3.1% as the OPEC member country’s oil production cut decision began to overshadow the growth of the UAE economy as a whole.

“This largely reflects the extension of the oil production cut until the end of the year, a decision taken by the OPEC+ alliance in October to maintain the stability of global oil markets,” UAE Central Bank said.

In a report issued today, UAE Central Bank raised its growth forecast for 2024 from 4.3% to 5.7%, likely to grow by 8.1% after recording an expected contraction of -3.4% in the current year.

“The forecasts for 2023 and 2024 remain subject to uncertainty, particularly due to the evolution of conflicts in Ukraine and Gaza, a faster-than-expected slowdown in global growth, and further reductions or increases in oil production” from OPEC+,” the central bank added.

The UAE economy maintained an annual growth rate in the second quarter similar to that achieved in the first quarter of this year at 3.8%, compared with 8% in the same period of 2022, according to Central Bank data.