UAE aims to double its GDP growth to 4.8% in 2024 from Oil and other sources

Posted on December 18, 2023   |  

UAE is set to double its growth in 2024, expecting a substantial increase in the gross domestic product (GDP) to 4.8%. 

This growth is driven by a strong expansion in the non-oil sector and significant revenues from oil.

In Q2 2022, the country saw a 3.7% year-on-year GDP growth, mainly thanks to the excellent performance of the non-oil sector.

Fiscal surpluses are predicted to stay above 5% of GDP in the short and medium term. 

Last year, the fiscal surplus exceeded 9% of GDP, ranking as the second-highest in the region after Qatar. 

This surplus was achieved through a remarkable revenue growth of 31.8%, primarily from increased oil revenues.

Positive economic indicators include the purchasing managers' index (PMI) reaching 57.7 in October, the highest since the COVID-19 pandemic. 

Additionally, the credit sector is thriving, with retail loans increasing by nearly 10% year-on-year despite higher borrowing costs.

Although the expected oil output for 2024 is around 3.35 million barrels per day, below the maximum capacity of 4.5 million barrels per day.