Invest GCC 2024 January Issue 2

UAE to benefit from oil recovery

The UAE economy will pick up momentum next year due to strong performance by the oil sector and non-oil trade. The GDP is expected to reach at 3.7% next year and will climb to 3.9% in 2025 as non-oil sector activity may continue its buoyant performance to support strong growth in oil sector.

The dirham has been officially pegged to the US dollar at a rate of AED 3.67 per USD since February 2002, with a de facto peg since 1980. There is no change expected in the current exchange rate system until 2028.

2024 OUTLOOK

3.7% GDP growth

2.2% Average inflation

4.24% Repo rate

LONG-TERM TRENDS

(3-year average) Year

GDP Growth (In%)

Inflation (In%)

2020-22

2.4

1.0

2023-25

3.5

2.5

2026-28

3.4

2.1

Sectors to Watch

Trade

Logistics

Oil

Tourism

Real Estate

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INVEST GCC: DAVOS 2024

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