The World Bank expected that the UAE economy will continue to recover in conjunction with the rise in oil revenues and the gradual recovery of the non-oil sectors, thus strengthening the UAE's position as one of the fastest economies to restore pre-pandemic levels (Covid-19).
According to the Emirates News Agency (WAM), Issam Abu Sulaiman, Regional Director of the Gulf Cooperation Council countries at the World Bank, stressed the expectations of the UAE’s GDP growth by 5.9% during 2022, with the growth of oil output by 9.2% and non-oil output by 4.6%.
Abu Sulaiman pointed out that expectations estimate the growth of the gross domestic product of the UAE by 4.1% in the year 2023, with the growth of oil output by 2.7% and the non-oil output by about 4.7%, expecting that the financial revenues in the UAE will strengthen with the rise in oil revenues, in addition to the recovery The gradual increase in the non-oil sectors, leading to a fiscal surplus of approximately 4.4% of GDP during 2022, with the fiscal surplus increasing to about 5% in 2023.
Abu Sulaiman estimated that the UAE would achieve a current account surplus of up to 11.2% of GDP during 2022, and rise to 11.9% in 2023, mainly supported by the bilateral free trade agreements recently signed by the UAE with Asian partners.
He explained that the countries of the Gulf Cooperation Council witnessed a strong economic recovery after the Corona pandemic in 2021 and until this year, in addition to their success in strengthening their public financial positions and the current account after they were severely affected in 2020.
The Regional Director of the Gulf Cooperation Council countries at the World Bank indicated that the easing of restrictions related to the (Covid-19) pandemic, along with positive developments in the oil markets, led to achieving strong recovery cases during the past and current two years in all Gulf Cooperation Council countries.
Abu Suleiman expected that the GCC region will record a strong double surplus during 2022 and also in the medium term, driven by the rise in oil and gas prices, noting that the balance of public finances of the GCC countries is expected to record a surplus of 5.3% in GDP in 2022, This is the first surplus recorded since 2014, while the external balance surplus of the GCC countries is expected to reach 17.2% of GDP in 2022, and 14.6% in 2023.
He also indicated that in light of this strong performance recorded from the beginning of this year, the economies of the Gulf Cooperation Council countries are expected to achieve a growth of 6.9% during 2022, and that the GDP of the Gulf Cooperation Council countries will reach two trillion dollars during 2022, to reach 6 trillions of dollars by 2050.
