UAE economy to grow at faster pace

UAE economy to grow at faster pace

High oil prices, crude production to lift UAE’s growth in 2022-23, say economists

Emirates NBD also upgraded its oil GDP forecast to 10 per cent in 2022 from six per cent previously but kept the non-oil growth forecast unchanged at four per cent. — File photo

Published: Mon 21 Feb 2022, 6:58 PM

High oil prices and increased crude output will boost the UAE’s economic growth this year and the next, say economists.

Dubai’s largest bank Emirates NBD raised the UAE’s growth forecast on the back of high oil prices and the country’s capacity to increase production.

“The UAE has significant capacity to ramp up oil production from current levels of 2.9 million per day at end of January 2022. But, we expect the country will maintain the steady 20,000-30,000 barrels per day increase we have seen in recent months for the rest of this year. This implies a 10 per cent increase in crude oil production this year relative to average 2021 output of 2.7 million bpd,” said Khatija Haque, head of research and chief economist at Emirates NBD Research.

Emirates NBD also upgraded its oil GDP forecast to 10 per cent in 2022 from six per cent previously but kept the non-oil growth forecast