UAE Sees Oil Rebound Boosting Economic Growth to 4.2% in 2022
The United Arab Emirates expects its economy to grow 4.2% in 2022, supported by a rebound in oil.
Growth in the oil sector’s gross domestic product is set to be at 5% this year, an increase from last year’s 2% contraction, according to preliminary data from the country’s central bank. Non-oil GDP is expected to remain in line with 2021.
Still, “economic projections are susceptible to uncertainties amidst Covid-19 repercussions,” it said in a quarterly economic review.
UAE Dec. Whole Economy PMI 55.6 vs 55.9 in Nov.
Gulf countries, including the UAE, were dealt with a double whammy in 2020 as the spread of the coronavirus pandemic was accompanied by a drop in crude prices, the main source of income for the region. Last year, sentiment was better as travel restrictions eased and Dubai’s Expo 2020 was launched, attracting millions of visitors.
The UAE’s daily virus cases have increased to more than 2,000 in recent days, however, a sharp rise from below 100 cases less than a month ago.
The International Monetary Fund expects the UAE’s economy to grow more than 3% this year and hover around the same levels into 2026 at least.
©2022 Bloomberg L.P.