UAE economy to grow 3% in 2023; 4% in 2024: S&P

UAE economy to grow 3% in 2023; 4% in 2024: S&P

ABU DHABI, 26th September, 2023 (WAM) -- The UAE economy is forecast to grow 3% in 2023 and 4% in 2024, driven by the non-oil sector, which is expected to benefit from strong growth in tourism, government initiatives, and technological advancements, according to S&P.

In statements to the Emirates News Agency (WAM), analysts at the credit rating agency underscored the UAE government's comprehensive implementation of economic and social initiatives over the past few years. These initiatives are strategically designed to set the stage for sustained, long-term economic expansion.

S&P analysts also anticipate continued growth within the UAE's robust tourism sector. The country's ability to host major international events is expected to play a pivotal role in achieving the UAE's ambitious goal of attracting 40 million visitors by 2030, accompanied by plans to expand the number of hotel rooms to 250,000 during the same period.

Analysts expect the UAE banking sector to remain robust, with profitability improving beyond pre-pandemic levels due to rising interest rates. The Dubai real estate sector is also expected to become more flexible, with stable housing prices supported by strong demand.

Trevor Cullinan, sovereign ratings analyst at S&P, said that the UAE economy is expected to grow by 3% in 2023,