Higher oil prices reinforce Gulf’s economic growth in 2023 – UBS’ Bolliger

Higher oil prices reinforce Gulf’s economic growth in 2023 – UBS’ Bolliger

Higher oil and gas prices will boost the Gulf economies throughout 2022 and 2023, Michael Bolliger, Chief Investment Officer for Emerging Markets at UBS Global Wealth Management, told Mubasher.

Bolliger stressed the need to use renewable energy amid rising escalations in Ukraine, noting that fossil fuels play a vital role in ensuring energy security and affordability.

The West has been seeking to replace Russian energy since the beginning of the Russian-Ukrainian crisis in February 2022. According to Bolliger, finding alternatives strengthens the Gulf's position as a reliable resource and key partner.

The UAE’s Economy

Bolliger pointed out that the UAE’s economy grew by 3.80% in 2021, backed by governmental incentives as well as a 5.30% increase in the non-oil sector. The growth momentum has further accelerated since the beginning of 2022 due to higher oil production within the framework of the OPEC+ alliance agreement and soaring energy prices.

The official indicated that the UAE recorded an 8.20% surge in its economy during the first quarter (Q1) of 2022, whereas oil gross domestic product (GDP) widened by 13%. Actual and planned crude oil production levels indicated that the GDP growth might remain in the double digits level for the whole year.

Leading indicators like the Purchasing Managers'