According to a rating agency, an increase of tourists, government efforts, and technological improvements would promote economic growth.
According to a recent report, the UAE’s GDP is predicted to increase by 4% in 2024 and 3% this year due to robust non-oil sector growth.
According to S&P analysts, the country’s economic growth will be fueled by increasing tourist arrivals, helpful government efforts, and advancing technology.
Wholesale commerce, industry, property, construction, financial services, tourism, and oil and gas are expected to be major drivers of the nation’s economic growth in 2024, according to Trevor Cullinan, national ratings analyst at S&P, who spoke to state news agency Wam.
S&P stated that the economic and social policies put in place by the administration over the previous two years “are strategically designed to pave the way for received, long-term economic expansion.”
“The UAE’s grandiose goal of luring 40 million tourists by 2030, along with the intention of raising the total amount of lodgings to 250,000 over the same period, are anticipated to have a pivotal role in the nation’s capacity to host big international events.”
The predicted economic growth is in line with predictions made by the UAE central bank, which anticipates that the nation’s GDP will rise by 3.3% this year.
In the UAE’s non-oil private sector economy, business activity remained brisk in August, with output and the number of new orders both rising.
The second-largest economy in the Arab world, as measured by the adjusted for the season S&P Global purchasing managers’ index, fell from 56 in July to 55 in August. That was far higher than the neutral 50-point line dividing growth from contraction.
As productivity increased significantly and firms experienced their fastest drop in time to delivery in more than four years, the year-ahead optimism among those questioned reached its best level since March 2020.
Expatriate and tourist inflows, as well as favorable mood from investors, consumers, and the private sector, will support the UAE’s non-oil economy, according to Mr. Cullinan.