The credit rating agency, Moody's, expected that the economy of the United Arab Emirates will grow this year by between 6 and 7% at the level of real GDP, thanks to the strong recovery witnessed by the country since the beginning of the year.
Moody's stated in a report on Monday that the growth of the UAE's economy this year is boosted by the growth of the non-oil economy by about 5%, and the growth of the oil sector by up to 12%.
Moody's Deputy Chief Analyst said the agency expects the UAE's real GDP to grow by 6% to 7% in 2022, and that the credit quality of UAE real estate companies will remain broadly stable in the next 12-18 months.
Lahlo Miksawi added: However, the successive waves of the Corona virus, high inflation with increased interest rates globally, and fears of recession in the United States and Europe pose risks to the global economic recovery and, by extension, the UAE economy.
The Emirates’ management of the Corona file and new residences has already revived the labor market, which is a major driver of housing demand, as the population of Dubai has grown over the past few years and this is a credit positive because population growth will contribute to achieving a balance between supply and demand in the residential market.
Moody's stated in the report that the growth of the UAE's economy attracts foreign investment and enhances economic confidence in the country. For example, in February 2022, Apollo Global Management, one of the world's largest alternative investment managers, signed a commitment with Aldar Properties to invest $1.4 billion to drive the growth of the UAE company.
