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GLOBAL challenges have tested the resilience of the United Arab Emirates, but the aim is to grow the economy at 7 per cent in 2024, said Abdulla Bin Touq Al Marri, UAE Minister of Economy.
The UAE has been aiming to grow 7 per cent per year in order to double its gross domestic product (GDP) to Dh3 trillion by 2030, he said. “The last three decades of low inflation and low interest rates are no longer normal. Now we need to design an economy keeping in mind the current levels of inflation and interest rates,” the minister said in his address to the Economy Middle East Summit 2024, on May 3.
The event focused on navigating the global economic landscape beyond 2024 and emphasised the Middle East and North Africa (Mena) region’s economic outlook amidst new global realities. Al Marri said the UAE has made great strides in diversifying its national economy and shifting towards a flexible economic model based on knowledge and innovation. As a result, the non-oil sector accounts for 74 per cent of the country’s total GDP.
“The UAE continues its efforts to provide an incubating environment for conducting business and economic activities and develop flexible and competitive legislation and economic policies that will enhance the country’s attractiveness for foreign investments through establishing a suitable economic climate for investors, capital owners, and entrepreneurs, he said. The most notable developments, he said included the granting of 100 per cent foreign ownership of companies, modernisation of visa and residency systems, and the introduction of self-employment and long-term residency pathways.
It is worth recalling that the UAE Central Bank had projected a 4.2 per cent growth for 2024 and 5.2 per cent for the next year. The World Bank last month raised the projected growth for the UAE to 3.9 per cent for 2024 and 4.1 per cent for 2025.
Roberta Gatti, Chief Economist of Mena at the World Bank, is optimistic about 2025, anticipating that the brakes on oil production will be taken off. “The governments in the Mena region have to work on balancing the relationship between the public and private sectors. That would be the first step to moving away from an informal economy,” he said.
