Economic forecast for 2024

Government initiatives, technological advances and a large influx of tourists are having a positive impact on the development and expansion of the non-oil sector in the UAE. In 2023, the state’s economy is expected to increase by 3.3%, and according to the forecast of the UAE Central Bank, in 2024, this growth will constitute 4%.

Among the main factors for the country’s economic growth in the next year are real estate, construction and tourism. Other priority areas comprise oil and gas, industry, wholesale trade and financial services.

The UAE government has set an ambitious goal to attract 40 million tourists by 2030, and during the same period, the country plans to expand the number of hotel rooms to 250,000.

One of the main tools to achieve this goal is the ability of the UAE to host international events. For example, the major Cop 28 climate summit will be held from November 30 to December 12, in which the event is expected to attract 70,000 people during the peak of the winter tourist season.

According to experts’ forecasts, the UAE banking sector will remain stable, and due to the rising interest rates, profitability will increase to pre-pandemic levels. In the first half of 2023, the revenues of the four largest UAE banks increased sharply. The combined net profit of Abu Dhabi Commercial Bank, Emirates NBD, First Abu Dhabi Bank and Dubai Islamic Bank amounted to USD 7.4B compared to USD 4.4B for the same period in 2022.