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.
APPLE IPAD MINI (A17 PRO)
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Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
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STAY%2C%20DAUGHTER
Profile
Company: Libra Project
Based: Masdar City, ADGM, London and Delaware
Launch year: 2017
Size: A team of 12 with six employed full-time
Sector: Renewable energy
Funding: $500,000 in Series A funding from family and friends in 2018. A Series B round looking to raise $1.5m is now live.
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Daniella Weiss and Nachala
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Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
The%20Afghan%20connection
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Engine: 0.8-litre four cylinder
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Torque: 66Nm
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1.
2.
3.
4.
5.
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The national orchestra
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The%20specs
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Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
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FA Cup fifth round draw
Sheffield Wednesday v Manchester City
Reading/Cardiff City v Sheffield United
Chelsea v Shrewsbury Town/Liverpool
West Bromwich Albion v Newcastle United/Oxford United
Leicester City v Coventry City/Birmingham City
Northampton Town/Derby County v Manchester United
Southampton/Tottenham Hotspur v Norwich City
Portsmouth v Arsenal
Long read
Mageed Yahia, director of WFP in UAE: Coronavirus knows no borders, and neither should the response
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Bridgerton%20season%20three%20-%20part%20one
Zayed Sustainability Prize
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The Bio
Amal likes watching Japanese animation movies and Manga - her favourite is The Ancient Magus Bride
She is the eldest of 11 children, and has four brothers and six sisters.
Her dream is to meet with all of her friends online from around the world who supported her work throughout the years
Her favourite meal is pizza and stuffed vine leaves
She ams to improve her English and learn Japanese, which many animated programmes originate in
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Comment on Coronavirus
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
Turning%20waste%20into%20fuel
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How do Sim card scams work?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards by claiming to be the victim, often pretending their phone has been lost or stolen in order to secure a new Sim.
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
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Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
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Director: Saeed Roustaee
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MOUNTAINHEAD REVIEW
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War on waste
Company%20Profile
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
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Korean Film Festival 2019 line-up
Innocent Witness, June 26 at 7pm
On Your Wedding Day, June 27 at 7pm
The Great Battle, June 27 at 9pm
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Romang, June 28 at 6pm
Mal Mo E: The Secret Mission, June 28 at 8pm
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MATCH INFO
Euro 2020 qualifier
Ukraine 2 (Yaremchuk 06', Yarmolenko 27')
Portugal 1 (Ronaldo 72' pen)
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Defence review at a glance
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