UAE Economy To Grow 3% This Year, 4% in 2024: S&P

UAE Economy To Grow 3% This Year, 4% in 2024: S&P

The UAE economy will grow three per cent in 2023 and 4 per cent in 2024, according to S&P.

The economic growth will be driven by the non-oil sector, which is expected to benefit from strong growth in tourism, government initiatives, and technological advancements, said the credit rating agency.

Analysts pointed to the UAE’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 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 40m 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 per cent in 2023, driven by the non-oil sector. He added that the economy