UAE GDP growth 3.7% in the first half of 2023

The UAE’s economic outlook for 2023 looks steady as the economy grew by 3.7% in the first half of the year on account of non-oil sector growth. Minister of Economy Abdullah bin Touq stated that the economic growth may seem modest but given the global and regional uncertainty, it is still robust. 

The UAE’s GDP growth momentum is likely to continue for the second half of 2023 (projected to grow by 3.6%). This economic resurgence is backed by government initiatives to offset the impact of pandemic as well as the higher oil prices.

In the AIM Summit in Dubai, he added that the non-oil sector growth accounted for 5.9% in the first six months while contributing 71% towards the GDP. This demonstrates that the diversification initiatives undertaken by the UAE government are successful. Moreover, the government is determined to build an economy that can pave the way for a thriving business environment.

UAE GDP growth data of 3.8% ($114 bn) in Q1

For the first quarter of 2023, the UAE GDP grew by 3.8% and was valued at AED 418 billion ($114 billion). As stated earlier, despite the global and regional crisis, the UAE economy performed very well. This is because of the government’s focus on economic diversification with the motive of continuously upgrading economic procedures and legislation. At the start of 2023, the UAE government announced to reduce fees of 14 business services up to 92%. The objective behind fees reduction was to support SMEs by reducing the cost of doing business in the UAE. 

UAE Ranking – Ease of Doing Business Index

In the World Competitiveness YearBook 2022, the UAE is ranked 12th globally and 1st in the MENA region. Likewise, the UAE is ranked 16th globally in the World Bank’s Doing Business Report. These rankings indicate that it is easier for businesses to operate making the UAE’s Economic Outlook 2023 promising. 

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Author: Waqas Siddiqui
As a research consultant, I am passionate about supporting businesses in successfully expanding in the UAE and Gulf region. I can be reached at waqas@researchkonnection.com for research inquiries.