The UAE economy will grow faster than other countries in the North Africa and Middle East (MENA) region over the next year, according to research by a Dubai investment body.
“We expect many of the world’s leading economies to fall into recession over the next 12 months … [but] the UAE economy will grow faster than the average growth for other countries of the MENA region,” Robert Miles, analyst at the Dubai Investment Fund (DIF) told Al Arabiya English.
According to the research from the DIF, if the “current strength of the UAE economy continues,” GDP growth – which measures how fast an economy is growing – will be around 4.3 percent in 2023, 4.9 percent in 2024, and 5.7 percent in 2025.
Despite a global cost of living crisis – driven largely by the Russia-Ukraine war – the UAE is witnessing an increase in income levels as a result of rising wages and employments wages, Michael Bolliger, Chief Investment Officer Emerging Markets at UBS Global Wealth Management said earlier in August.
This has helped support local demand and, therefore, strengthened the country’s wholesale, retail, and real estate sectors, he added at the time.
According to the International Monetary Fund (IMF) Saudi Arabia’s economy is also set to fare well in 2022.
The UAE’s neighbor is likely to be one of the world’s fastest-growing economies this year, owing to its pro-business reforms and recovery from the pandemic-induced recession, the International Monetary Fund (IMF) said in August.
Gross Domestic Product (GDP) – one measure of how an economy is faring – is expected to reach 7.6 percent in 2022, the IMF said, the fastest growth the country has seen in almost a decade according to a report by the monetary body.