OPEC Report Predicts Strong UAE Economic Performance in 2023

OPEC Report Predicts Strong UAE Economic Performance in 2023

The Organization of the Petroleum Exporting Countries (OPEC) predicts a strong UAE economic performance in 2023. This is following a notable GDP growth of 7.9% observed in 2022. As per the August report, the UAE economy is going to continue performing strongly on account of contributions from the non-oil sectors. This particularly includes contributions by sectors such as tourism, hospitality and real estate.

Earlier this month, the Federal Center for Competitiveness and Statistics also published UAE GDP data showing strong economic growth of 3.8% for the first quarter of 2023. The UAE economy grew in value by AED 418.3 billion ($114 billion) in Q1 2023. To bolster economic growth further, the UAE Ministry of Finance also unveiled a 4-year strategy focusing on sustainability, innovation, financial leadership and future planning. 

UAE Economic Highlights 2023 – Steady PMI and Real Estate Sector Growth

The report indicated that the Global Purchasing Managers’ Index (PMI) for the country remained nearly steady at 56 in July. It maintained a consistent trend of expansion. This follows a reading of 56.9 in June and 55.5 in May. Likewise, the real estate sector of the UAE continues to progress positively, according to the report. Notably, the first half of 2023 witnessed a significant increase in overall property transactions. This growth played a crucial role in propelling residential property prices in Dubai. The property market surged by 16.9% year-on-year as of June, as reported by REIDIN.

Ease of Doing Business in UAE

The UAE is currently ranked 12th globally for competitiveness and 1st in the MENA region in the World Competitiveness YearBook – 2022. The overall score of UAE was 88.67 out of 100. Similarly, in the World Bank’s Doing Business Report, the UAE ranks 1st  among the Arab countries and 16th globally. The high rankings were achieved due to regulatory reforms. This makes it easier for businesses to operate as well as a reduction in government fees for business services. 

Entrepreneurial Culture in UAE

The initiative aligns with the objectives of the ‘Make in the Emirates’ aimed at creating an attractive business environment for investors. It will also support entrepreneurship by reducing the cost of doing business in the UAE.

Research Konnection is one of the best market research companies in the UAE. We specialize in business planning and feasibility studies. For setup in Dubai, Abu Dhabi and UAE, contact us at hello@researchkonnection.com.