The bank also revised its expectation of the real GDP growth next year, indicating it will grow by 3.9 percent, with the non-oil GDP to grow by 4.2 percent…reports Asian Lite News
The Central Bank of the United Arab Emirates (CBUAE) projected the real GDP to grow by 7.6 percent this year, instead of its previous expectation of 6.5 percent.
In its Q3 Review, the apex bank attributed the upward review to the robust performance of some non-oil sectors, including tourism, hospitality, real estate and manufacturing.
The review expected the non-oil GDP to grow by 6.1 percent in 2022, against 4.3 percent previously, with the oil GDP to expectedly grow by 11 percent this year.
The report explained that the overall real GDP continued to grow at a strong pace in Q3 following a signifiant growth in H1, underpinned by a rise in oil production and improvement in real non-oil GDP, as well as removal of most COVID-19-related restrictions. It was also buoyed by the recovery in the global travel and tourism sector, boom in the real estate and construction sectors, and the expansion of manufacturing activities, and various global events.
The bank also revised its expectation of the real GDP growth next year, indicating it will grow by 3.9 percent, with the non-oil GDP to grow by 4.2 percent.
Last week, the OPEC Monthly Oil Market Report for December revealed that the UAE economy has experienced sustained momentum in 2022, boosted by Expo 2020 and the easing of COVID-19 restrictions.
The report cited recent economic indicators suggesting strong growth has been maintained in most activities.
“The tourism sector, which accounts for around 6% of the UAE’s GDP, experienced strong growth and Dubai was again the world’s busiest international airport, with passenger numbers for the first time exceeding pre-pandemic levels in 2Q22,” added the report.
Considering the FIFA World Cup in Qatar, the report continued, tourism growth might increase further and boost 4Q22 GDP growth.
“In October, the S&P Global UAE PMI increased to 56.6 from 56.1 amid strengthening demand. The current expansion momentum might carry over to 2023 in line with government policies that aim to increase foreign direct investment through eight comprehensive economic and trade agreements it expects to sign in the near term,” the report noted.