UAE Economic Growth Outlook 2024
The UAE has a global reputation as an economic powerhouse with strong economic growth, and 2023 didn’t disappoint. Long upheld as an outstanding place to start a business, the UAE boasts a great geographic location, one of the world’s most lucrative imports and exports markets, no profit repatriation restrictions and – as we will see – robust economic growth that is set to weather the challenges facing global markets.
Beyond this unbeatable collection of corporate benefits, the seven Emirates also promise a lifestyle like no other. Lavish luxury, towering skyscrapers and the world’s best shopping pair with an extensive programme of cultural events, a vibrant expatriate community (counting residents from 200 nations), world-class transport and infrastructure as well as year-round sunshine. Living in the UAE really is a dream.
In this post, we’re going to take a look back at the UAE’s economic growth rate for the past year, before considering the growth forecast for 2024.
UAE economic growth in 2023
Economically, the past year has been one of remarkable performance set against a backdrop of global uncertainties and challenges. According to the Economy Minister, Mr. Abdulla bin Touq Al Marri, the UAE’s GDP grew 3.7% in the first half of the year.
The UAE has recently introduced reforms and measures to promote the diversification of its economy. This year, the effort was rewarded with non-oil growth skyrocketing an impressive 5.9% in the first six months of 2023. The non-oil sector has become a cornerstone of the UAE’s economic growth, thanks to the promotion of sectors like innovation and technology.
The International Monetary Fund forecasts real GDP in the UAE to be 3.4% for 2023. This growth is due to strong performances in tourism, real estate, construction, transport, manufacturing sectors and increased capital expenditure.
UAE economic growth forecast for 2024
Looking forward to 2024, the global economic landscape will continue to face uncertainties and challenges. These include a decline in oil demand, slow world trade, a drop in tourism (due to slower global growth) and geopolitical developments.
Nevertheless, according to the International Monetary Fund, the UAE has put adequate financial security measures in place to mitigate these challenges. Recently, the UAE Ministry of Economy has launched an economic roadmap for 2024 to 2117 to promote sustainability and progress across a number of sectors and industries.
The strategies include Abu Dhabi Economic Vision 2030, Environment Vision 2030 (Abu Dhabi), Plan Abu Dhabi 2030, Abu Dhabi Transportation Mobility Management Strategy, Surface Transport Master Plan (Abu Dhabi), Dubai Autonomous Transportation Strategy, Dubai Industrial Strategy 2030, Dubai 3D Printing Strategy and UN’s 2030 Agenda.
The UAE is, therefore, clearly an exceptional location for entrepreneurs to weather the challenges facing the global economy over the coming years.
Reap the benefits of a robust economy
If you’re impressed with the UAE’s economic history and future and want your company to benefit from all the related advantages, contact us today. We can assist with everything from company formation to banking applications, visa applications and much, much more. Let’s get the ball rolling.