UAE, Saudi Arabia to drive regional growth despite oil cuts, conflicts

UAE, Saudi Arabia to drive regional growth despite oil cuts, conflicts

The UAE has achieved “a historic first” as its robust national economy reached a milestone in its diversification drive with the non-oil sector accounting for 73 per cent of the country's total GDP.

Published: Sun 7 Apr 2024, 9:11 PM

Buoyed by a stronger-than-expected non-oil GDP growth in the UAE and Saudi Arabia, the Middle East economy remains robust, despite oil cuts and geopolitical turbulence, according to economists.

The latest PwC Middle East Economy Watch indicates that the regional economy remains resilient as the non-oil sector's growth is anticipated to stay robust, buoyed by a stronger-than-expected non-oil GDP performance in 2023 and Purchasing Manager Indices (PMI) in Saudi Arabia and the UAE, which are solidly in expansionary territory in early 2024.

The UAE has achieved “a historic first” as its robust national economy reached a milestone in its diversification drive with the non-oil sector accounting for 73 per cent of the country's total GDP. “This achievement reflects the confidence of the private sector and investors around the world in the UAE’s investment environment,” Abdullah bin Touq Al Marri, Minister of Economy, said while predicting that the Arab world’s second-largest economy would grow by up to 5.0 per cent in 2024.

In March, non-oil economies of