According to the Central Bank's (CBUAE) annual report, both the oil and non-oil sectors are anticipated to perform better next year, causing the UAE economy to expand at a higher rate.
The gross domestic product (GDP) of the nation is anticipated to have increased 7.6% last year, nearly double the rate seen the year before. This growth rate is also among the fastest in the entire world.
According to the CBUAE annual report, the growth rate is predicted to dip this year to 3.9% but perk up again the next year with a predicted GDP growth of 4.3%.
Real oil GDP is anticipated to increase by 3% and 3.5% in 2023 and 2024, respectively. However, the prediction may be affected by how the Russia-Ukraine conflict develops, the increased danger of a global downturn, and the potential for additional Opec+ production cutbacks.
Due to a number of factors, such as the lifting of most Covid-19-related restrictions, the ensuing recovery in the travel and tourism, real estate, and construction sectors, the expanding manufacturing activity, and increased activity associated with world-class events like Expo 2020 Dubai and the Fifa World Cup in Qatar, non-oil GDP growth is estimated to have accelerated to 6.6 percent in 2022 from 5.8 percent in 2021.
According to global economic trends, the Central Bank forecast real non-oil GDP growth for 2023 and 2024 to dip to 4.2% and then pick up to 4.6%, respectively.
Termination of Covid support measures
His Majesty Vice-President, Deputy Prime Minister, Minister of Presidential Affairs, and Chairman of the Central Bank's Board of Directors Sheikh Mansour bin Zayed Al Nahyan stated that the apex bank, which serves as the UAE's macro-prudential authority, has ended the majority of temporary support programs designed to aid the nation in coping with the pandemic.
He claimed that this choice was a reflection of the banking system's financial recovery from the pandemic.
In the first nine months of 2022, the UAE reported a budget surplus of Dh169.6 billion ($46.19 billion), up 165% over the corresponding period in 2021, according to CBUAE.
According to the annual report, revenues increased 35.6% to Dh453.7 billion between January and September 2022 as a result of "strong oil and non-oil growth and favorable oil prices."
In the past nine months, total spending increased 5% year over year to Dh248.1 billion. Net investment in non-financial assets, measured as capital spending, decreased by over 20% to Dh10.9 billion.
According to the CBUAE, "a general increase in all spending categories, except subsidies," caused current spending to grow 6.3% to Dh273.1 billion.