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Economic growth in the UAE will accelerate to more than 5% in 2024, outpacing the 2.8% growth expected for the global economy, S&P Global Ratings’ Associate Director of Corporate Ratings Tatiana Leskova tells state news agency Wam. The country’s GDP grew at an estimated 3% in 2023, Leskova estimates, with nearly 6% growth in the non-oil sector, despite “subpar growth levels” in the global economy.
This is higher than most other projections: The World Bank expects to see 3.7% growth in 2024, it said in its Global Economic Prospects report (pdf), up from the previous estimate of 3.4% in the June edition of its report. The Arab Monetary Fund sees the UAE’s GDP growing at a 4.3% clip this year, while the Central Bank of the UAE is more bullish, saying last month it sees the economy growing at a 5.7% clip in 2024.
Driving the growth: Economic growth in 2024 and 2025 are set to be underpinned by sustained momentum in Dubai’s hospitality, wholesale, retail, and financial services sectors, Leskova said.
Real estate shows its defensive mettle: The UAE, and particularly Dubai, have shown relative resilience to global economic challenges, attributed to “limited sensitivity to interest rates and contained inflation,” Leskova explained. Dubai — where more than 80% of real estate sales are made with bank notes — witnessed an increase in mortgage transactions, despite higher interest rates, she added. Dubai also remains the most appealing destination for real estate investments, despite the emergence of gaming hotels in Ras Al Khaimah, she said.
