Economic situation in the United Arab Emirates (2022)

Report on the economic situation in the United Arab Emirates (2022)

As a result of economic diversification, the UAE now depends not only on the oil sector but also on other sectors, and this diversification has contributed to achieving remarkable economic growth. The UAE has witnessed a recovery in the tourism sector, an increase in demand for real estate, and a rise in oil prices, all of which have contributed to enhancing economic growth. The GDP growth rate in 2022 reached 5.3%, and this is considered the highest growth rate recorded by the UAE since 2019, as the growth rate in that year was 1.1%. This rate is expected to decline in 2023 to 3%.

The UAE appears as one of the countries least affected by inflation globally, with the inflation rate in the first quarter of 2022 recording 3.8%. The inflation rate in 2023 is expected to be 3.6%. The consumer price index in the first quarter of 2022 recorded a level of 102.77 points.

The nominal GDP at the end of 2022 is expected to reach approximately $487 billion, which is the highest level achieved by the UAE since 2019. This achievement is attributed to rising oil prices and the recovery in other sectors. The oil sector achieved a growth rate of 8.9%, while the non-oil sector achieved a growth rate of 4% during the year 2022. The UAE achieved surpluses in the state’s general budget, and it is expected to record large surpluses this year, amounting to 8.9% as a percentage of GDP. Despite the broadly positive outlook, there are some challenges facing the economy. Oil prices are rising, which may contribute to boosting growth and strengthening other sectors.

The following table shows the most important economic indicators for the UAE:

Indicator Year 2022
Nominal GDP $487 billion
Real GDP growth rate 5.3%
Oil sector 8.7%
Non-oil sector 4%
Inflation 3.8%
Setting the general budget 8.9%

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