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IMF Forecasts 4% Economic Growth for UAE in 2024


Mon 20 May 2024 | 11:48 PM
The International Monetary Fund (IMF)
The International Monetary Fund (IMF)
By Ahmad El-Assasy

The International Monetary Fund (IMF) announced on Monday that the UAE is experiencing robust economic growth, projecting a real GDP increase of around 4% this year. This marks an upward revision from earlier estimates.

In its latest report, which includes regional economic forecasts published in April, the IMF had predicted the UAE's GDP growth at 3.5% for 2024.

In the most recent statement concluding the Article IV consultations, IMF experts highlighted that the UAE's economic growth is broad-based, supported by strong domestic activity in sectors such as tourism, construction, and financial services.

The statement said, "Foreign demand for real estate, bolstered bilateral and multilateral relations, and the UAE's status as a safe haven continue to drive rapid increases in housing prices and rents, along with abundant local liquidity."

It added that overall economic growth is likely to receive further support from an increase in GDP growth in the hydrocarbon sector this year, partly due to higher crude oil production following the UAE's increased share in the OPEC+ alliance.

The UAE, one of the world's largest oil exporters, has accelerated the implementation of plans to diversify its economy away from heavy reliance on oil and gas and attract foreign investment. The non-oil GDP now contributes over 70% to the total GDP.

The IMF stated that the accelerated pace of investment in the public and private sectors and structural reforms, including in sectors such as renewable energy and technology, "could stimulate growth beyond expectations."