UAE economy to grow by 3.5% in 2023, UBS says

UAE economy to grow by 3.5% in 2023, UBS says

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The UAE’s gross domestic product (GDP) is projected to grow by 3.5 per cent in 2023, rising to 3.9 per cent next year, according to UBS estimates.

Growth is supported by an increase in non-oil activities and strong demand for oil and the country’s energy investments, Michael Bolliger, chief investment officer, emerging markets at UBS Global Wealth Management said in a statement to WAM.

The country’s non-oil economy is projected to grow by a robust 4.5 per cent this year.

Bolliger said the introduction of a 9 per cent corporate tax this year, following the adoption of a 5 per cent value-added tax (VAT) in 2018, contributes to bolstering public finances.

These measures along with other initiatives to further reduce the economy’s dependence on the hydrocarbon sector will further diversify the economy.

“This, in turn, contributes to supporting macroeconomic stability as well as the country’s fiscal accounts and its balance of payment, further boosting the country’s attractiveness as a destination for foreign direct and portfolio investments,” Bolliger said.

Multinational corporations tend to consider corporate tax rates for their expansive investment decisions, Bolliger explained, while noting the UAE’s favourability in this regard, especially as the country levies one of the least corporate