Today: 28 May 2025
1 November 2022
2 mins read

UAE’s real GDP to grow by 5.9% in 2022

Recent bilateral free trade agreements with Asian partners supported by strong oil exports will place the UAE’s current account surplus at 11.2 percent of GDP in 2022…reports Asian Lite News

The World Bank has hailed the UAE’s “favourable business environment and world-class infrastructure”, expecting the country’s real GDP to grow by 5.9 percent in 2022.

This came as the World Bank announced its new Gulf Economic Update (GEU) where it said higher oil receipts supplemented with a gradual non-oil recovery in the Emirates will bolster fiscal revenue resulting in a fiscal surplus to hover around 4.4 percent of GDP in 2022.

Recent bilateral free trade agreements with Asian partners supported by strong oil exports will place the UAE’s current account surplus at 11.2 percent of GDP in 2022, according to the report. However, the bank expected the real GDP to moderate to 4.1 percent in 2023 as slower global demand may dampen growth due to tightening financial conditions.

According to the GEU, the economies of the Gulf Cooperation Council (GCC) are projected to expand by 6.9 percent in 2022 before moderating to 3.7 percent and 2.4 percent in 2023 and 2024.

“Easing of pandemic restrictions, and positive developments in the hydrocarbon market drove strong recoveries in 2021 and 2022 across the GCC. Strong economic recovery and supply chain bottlenecks raised inflation in the GCC to an average rate of 2.1 percent in 2021 — up from 0.8 percent in 2020.”

Supported by higher hydrocarbon prices, the report continued, the GCC region is “expected to register strong twin surpluses in 2022 and continue over the medium term. The regional fiscal balance is projected to register a surplus of 5.3 percent of GDP in 2022 – the first surplus since 2014 — while the external balance surplus is expected to reach 17.2 percent of GDP.”

“There is an excellent and timely opportunity to diversify the economy further using a green growth strategy, and playing a leading role in the global transition to low-carbon economies,” said Issam Abousleiman, World Bank Regional Director for the GCC. “The region could use the green growth transition to focus policies on developing green technologies and associated skilled labor that would reverse trends in productivity and enable the region to grow faster.”

The GCC countries’ total GDP, according to the report, is projected to be close to US$ 2 trillion in 2022. “If the GCC continued business as usual, their combined GDP would grow to an expected US$ 6 trillion by 2050. However, if the GCC countries implemented a green growth strategy that would help and accelerate their economic diversification, GDP could have the potential to grow to over US$ 13 trillion by 2050.”

ALSO READ: Emirates highlights support for long-standing UAE-Egypt ties

Previous Story

Kyrgyzstan to name mountain peak after Sheikh Zayed

Next Story

India gives $2.5 mn aid to UN agency for Palestinian refugees

Latest from -Top News

Islamabad-Ankara-Baku Axis Sharpens Against India

Both Turkey and Azerbaijan have openly expressed solidarity with Pakistan and backed Islamabad in its military standoff with India, this month….reports Asian Lite News The evolving alliance between Islamabad, Ankara, and Baku

India Targets Pak Terror Ties in Guyana

The delegation met the Guyanese President, Mohamed Irfaan Ali, who had hosted a dinner to celebrate friendship and shared aspirations between the two nations…reports Asian Lite News Congress leader Shashi Tharoor, currently

Qatar Stands With India on Terror

Khulaifi conveyed Qatar’s solidarity with India and its policy of zero tolerance against terrorism for regional stability…reports Asian Lite News Qatar’s Foreign Affairs Minister Mohamed bin Abdulaziz bin Saleh Al Khulaifi expressed

Ramaphosa gains from US showdown

South African President’s conduct with Trump reminded South Africans of his diplomatic pedigree, and of his importance to the country’s rules-based order South Africa’s President Cyril Ramaphosa and his delegation went to
Go toTop

Don't Miss

UAE to supply camel milk to EU Countries

European Commission approves UAE camel milk for continued export to

Hamdan, Abdullah take oath as Dy PMs

At Qasr Al Watan in Abu Dhabi, new ministers including