Bigger Opec+ quota set to boost UAE’s growth in 2024

Bigger Opec+ quota set to boost UAE’s growth in 2024

An Adnoc worker at an oilfield. The UAE has committed to cut oil production by 0.16 million barrels per day in Q1 2024. — File photo

Published: Sun 14 Jan 2024, 5:38 PM

Propelled by a bigger Opec+ quota from the second quarter and a turbocharged non-oil business activity, the UAE is set to boost its economic growth in 2024 after what appeared to be a weak performance in 2023 compared to the previous year.

The UAE’s oil output will be stronger in 2024 than in 2023 as the country negotiated a higher Opec+ quota from the second quarter 2024, according to FocusEconomics Consensus Forecast.

In the first 11 months of 2023, the UAE as a whole pumped 3.6 per cent less crude oil than it did in the same period in 2022, after agreeing with Opec+ earlier in 2023 to curb output. “More positively, non-oil business activity was the strongest in four years in October and remained rapid in November and December,” economists at FocusEconomics said.

The UAE has committed to cut oil production by 0.16 million barrels per day in Q1 2024 (roughly 5.0 per cent of average output in 2023), dampening activity in the quarter, but activity this year will be boosted