UAE’s real Gross Domestic Product (GDP) is projected to grow by 3.4 per cent by 2023 and further increase to 3.7 per cent in 2024, according to a recent report published by the World Bank.
The report also states that the country’s non-oil GDP growth is expected to reach 4.5 per cent in 2023, driven by the tourism, real estate, construction, transportation, and manufacturing sectors, along with increased capital expenditure.
Meanwhile, the oil GDP is expected to grow by 0.7 per cent in 2023 and rise to 3.6 per cent in 2024.
The World Bank anticipates that the UAE’s current account balance will increase to 12.4 per cent in 2023 and 11.8 per cent in 2024. The country is also expected to achieve a surplus in the fiscal balance by 5.2 per cent in 2023 and 4.6 per cent in 2024.
As per the report, the Gulf Cooperation Council (GCC) region is expected to witness a growth of 1% in 2023. This will be followed by a rise to 3.6% and 3.7% in 2024 and 2025 respectively.
The growth will be driven by the non-oil sectors, which are anticipated to have a growth rate of 3.9% in 2023 and 3.4% in the medium term. This growth will be supported by sustained private consumption, strategic fixed investments, and accommodative fiscal policy.
According to Khaled Alhmoud, Senior Economist at the World Bank, the development and diversification of non-oil sectors will have a positive impact on the creation of employment opportunities across sectors and geographic regions within the GCC.
Johannes Koettl, Senior Economist at the World Bank, said, “GCC countries have witnessed a remarkable increase in female labour force participation. Saudi Arabia’s achievements in advancing women’s economic empowerment in just a few years are impressive and offer lessons for the MENA region and the world.”
The report states that the workforce in the Saudi private sector has grown steadily, reaching 2.6 million in early 2023. Moreover, the participation of Saudi women in the labour force has more than doubled in six years, from 17.4% in early 2017 to 36% in the first quarter of 2023.