Today: 2 August 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

IBPC Dubai charts new growth path

Former Tata Motors CEO Ravi Kant headlines exclusive event as Indian business council sets course for transformation….reports Asian Lite News The Indian Business & Professional Council (IBPC) Dubai has signalled a significant

Miles in the Malls!

Dubai Mallathon kicks off today – The emirate’s biggest malls transform into indoor fitness arenas, inviting residents to walk, run, and win — all while staying cool, healthy, and community-connected….reports Asian Lite

Famine grips Gaza, WHO warns

WHO said Gaza’s population is facing acute food insecurity under the Integrated Food Security Phase Classification…reports Asian Lite News The World Health Organisation (WHO) has issued its starkest warning yet about the

Lifeline from UAE to Gaza

UAE’s Operation Chivalrous Knight 3 sustains Gaza’s collapsing health system with hospitals, treatment, aid, and vaccines, offering vital relief to thousands amid deepening crisis….reports Asian Lite News The United Arab Emirates has

Modi, MBZ talk big ties

The call reaffirmed their keenness to “strengthen relations in line with their shared vision to leverage opportunities and deepen strategic cooperation.”…reports Asian Lite News In a significant diplomatic engagement, Prime Minister Narendra
Go toTop

Don't Miss

Dubai announces Dh30b rain drainage network

The ‘Tasreef’ project, will enhance the capacity of Dubai’s rainwater

Dubai Chambers, Indian envoy explore trade, investment ties

A high-level meeting between Eng. Sultan bin Saeed Al Mansoori,