The UAE Central Bank now expects the country's economy to expand by 4 per cent this year, an increase from its June estimate of 3.9 per cent, on the back of a boost from its non-oil sector as the Emirates moves forward with its diversification strategy.
Growth will also be supported by global economic agreements, the regulator said in its quarterly economic review report on Wednesday.
The Arab world’s second-largest economy reported a record Dh1.4 trillion ($381.5 billion) in non-oil foreign trade in the first six months of this year, according to official figures.
That comes after the UAE signed comprehensive economic partnership agreements (Cepas) with rapidly growing economies in Asia, the Middle East and Africa, including with India, Turkey, Israel, Indonesia, Cambodia, Georgia, South Korea, Chile and Mauritius.
Cepas aim to reduce tariffs and remove bottlenecks that hamper trade. This programme is projected to increase the national exports by 33 per cent and add more than Dh153 billion to the economy by 2031.
The UAE has been focused on diversifying its economy from oil, with non-oil sector growth picking up significantly in recent quarters. In the first quarter, the country's economy expanded by 3.4 per cent, with real GDP reaching Dh430 billion, the Ministry of Economy said this month. The non-oil sector expanded by 4 per cent year on year during the quarter.
In the first half of the year, the transport and tourism sectors grew strongly, with tourist arrivals surging by 14.2 per cent, the Central Bank report said. Passenger traffic at Abu Dhabi and Dubai international airports also rose by 33.8 per cent and 8 per cent, respectively, during the period.
The real estate sector also recorded robust activity, with residential sales transactions in Dubai in the first half of 2024 increasing by 34.8 per cent. In Abu Dhabi, sales transactions in the January-June period grew 2.3 per cent on a yearly basis.
The boost to the GDP this year also reflects the "improved performance of the oil sector", but growth forecasts continue to be "driven by tourism, transportation, financial and insurance services, construction and real estate, and communications sectors", the regulator said.
While Opec+ decisions on production quotas amid global uncertainties will influence overall growth, the non-hydrocarbon sector remains robust and is projected to grow 5.2 per cent and 5.3 per cent in 2024 and 2025, respectively, the Central Bank said.
Overall, for 2025, the regulator revised down its economic growth forecast to 6 per cent, compared with 6.2 per cent earlier.
The Opec+ group has now extended production cuts until the end of 2025 amid the drop in oil prices on concerns of sluggish demand. On June 2, the oil bloc agreed to extend output cuts of 3.66 million barrels per day, which were initially planned to end this year, until the end of next year.
Meanwhile, the additional 2.2 million bpd voluntary production cuts of eight Opec+ member states were extended by three months until the end of September.
The UAE Central Bank also warned of potential risks to economic growth in 2024 and 2025. “We see risks from escalation of some of the current geopolitical tensions or eruption of new ones [including the Russia-Ukraine conflict, the war in Gaza, and the disturbances in the Red Sea] … from a global economic deceleration resulting from the extensive period of high interest rates and from potential further oil production cuts by Opec+,” the report said.
The regulator also revised its inflation forecast for the UAE to 2.2 per cent, from 2.3 per cent for 2024. Inflation forecasts may be revised downward if disinflationary trends in food, beverages, and key non-tradable components continue to persist, it said.
Inflation is projected to stay at 2.2 per cent next year, primarily influenced by “non-tradable components and exchange rate behaviour of the US dollar”. Non-tradable components refer to goods and services that are consumed domestically, such as housing, healthcare, utilities and education.
Global state-owned investor ranking by size
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China
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
Stats at a glance:
Cost: 1.05 billion pounds (Dh 4.8 billion)
Number in service: 6
Complement 191 (space for up to 285)
Top speed: over 32 knots
Range: Over 7,000 nautical miles
Length 152.4 m
Displacement: 8,700 tonnes
Beam: 21.2 m
Draught: 7.4 m
Global institutions: BlackRock and KKR
US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.
KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
UAE currency: the story behind the money in your pockets
UFC%20FIGHT%20NIGHT%3A%20SAUDI%20ARABIA%20RESULTS
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COMPANY%20PROFILE
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Cricket World Cup League 2 Fixtures
Saturday March 5, UAE v Oman, ICC Academy (all matches start at 9.30am)
Sunday March 6, Oman v Namibia, ICC Academy
Tuesday March 8, UAE v Namibia, ICC Academy
Wednesday March 9, UAE v Oman, ICC Academy
Friday March 11, Oman v Namibia, Sharjah Cricket Stadium
Saturday March 12, UAE v Namibia, Sharjah Cricket Stadium
UAE squad
Ahmed Raza (captain), Chirag Suri, Muhammad Waseem, CP Rizwan, Vriitya Aravind, Asif Khan, Basil Hameed, Rohan Mustafa, Kashif Daud, Zahoor Khan, Junaid Siddique, Karthik Meiyappan, Akif Raja, Rahul Bhatia
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
