UAE economy to grow more than 6% in 2022: IMF

UAE economy to grow more than 6% in 2022: IMF

The UAE economy is forecast to expand further than previously expected, owing to a strong rebound in domestic activity and higher oil prices, according to the International Monetary Fund (IMF).

Overall, the UAE’s gross domestic product (GDP) growth will exceed 6% this year, up from 3.8% in 2021, while inflation is likely to average just above 5%, the Washington-based lender said. The non-hydrocarbon sector is expected to grow around 4% next year and “accelerate” over the medium term, underpinned by the government’s ongoing reforms.

The new 6% growth is higher than the previous forecast. Last month, the IMF’s World Economic Outlook said the UAE’s GDP was on track to grow 5.1% in 2022, the highest in nearly a decade.

The IMF issued the statement following discussions with UAE authorities from November 2 to 17, 2022. According to Ali Al-Eyd, who led the IMF staff team, the UAE has seen robust growth this year.

“[The growth has been] led by a strong rebound in tourism, construction and activity related to the Dubai World Expo, as well as higher oil production in line with the OPEC+ production agreements,” Al-Eyd said.

He said that fiscal and external surpluses have expanded further on the back of higher oil prices