UAE minister announces target of 7% economic growth in 2024

Burj Al Arab

Despite global challenges, the UAE is targeting an economic growth rate of 7% in 2024, as stated by Abdulla Bin Touq Al Marri, the Minister of Economy. This ambitious goal is part of a broader strategy to double the nation’s gross domestic product (GDP) to AED 3 trillion by 2030. Following a near-8% growth in 2022, projections for future growth remain optimistic, with an earlier ministerial forecast anticipating a growth of up to 5% in 2024.

Addressing the attendees at the Economy Middle East Summit 2024 in Abu Dhabi Global Market (ADGM), Al Marri highlighted that the era of low inflation and interest rates has ended, necessitating a redesign of the economic framework to adapt to current financial conditions.

Projections from the UAE Central Bank and the World Bank also suggest a positive trajectory, with growth estimates of 4.2% and 3.9%, respectively, for 2024, and further improvements expected in 2025.

The summit provided a platform to discuss the economic future of the MENA region against the backdrop of new global economic realities. Al Marri emphasised the UAE’s progress in diversifying its economy, with the non-oil sector now comprising 74% of the total GDP. He also detailed initiatives aimed at enhancing the UAE’s business environment, including 100% foreign ownership of companies, updated visa and residency systems, and pathways for self-employment and long-term residency, which bolster the nation’s appeal as an area for investment.

The chief economist for MENA at the World Bank, Roberta Gatti, expressed optimism for 2025, particularly with potential changes in oil production strategies. She focused on the necessity for MENA governments to enhance synergy between the public and private sectors to move away from informal economic practices.

Original article reference: Khaleej Times.

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