WEEKLY BUSINESS ROUNDUP - 10th June 2024 – 16th June 2024

World Bank reported global growth stabilized for the first time in 3 years

As per World Bank’s latest Global Economic Prospects report the global economy is expected to stabilize for the first time in three years in 2024. Global growth is expected to hold steady at 2.6% in 2024 before surging to an average of 2.7% in 2025-26. Global inflation is estimated to moderate to 3.5% in 2024 and 2.9% in 2025, but the pace of decline is slower than was projected just six months ago. 

 

World Bank predicts UAE’s real GDP likely to rise to 4.1 % in 2025

UAE’s real GDP likely to grow by 3.9% in 2024 and expand to 4.1% in 2025. Compared to its January forecast of 3.7% growth for the UAE, in April 2024 World Bank raised its forecast for real GDP growth in the UAE to 3.9% in 2024.

 

CBUAE reports on monetary and banking developments for March 2024

Central Bank of the UAE (CBUAE) reported the money supply aggregate M1 increased by 3.7%, from AED847.0 billion at the end of February 2024 to AED878.1 billion at the end of March 2024. This surge was spurred by the AED6.0 billion rise in currency in circulation outside banks combined with AED25.1 billion increase in monetary deposits. Gross banks’ assets including bankers’ acceptances, increased by 1.3%, from AED 4,198.0 billion at the end of February 2024 to AED 4,254.5 billion at the end of March 2024.

 

UAE showcases growth in its non-oil sectors

As per data released by the Organization of the Petroleum Exporting Countries (OPEC), the UAE continued to demonstrate growth in its non-oil sectors, registering a 6.7 percent expansion, y-o-y, in Q4, 2023, up from 5.8% in Q3 2023. It is estimated construction sector growth hit 8.4% in Q4 2023 and overall growth reached 6.4% in Q4 2023. Further 2023 was a record year for tourism in Dubai as number of international visitors was at 19.4% from 2022, surpassing 2019 levels.

 

UAE economic growth projected at 3.9% this year

As per Central Bank of UAE, UAE’s financial sector surged to AED 4 trillion in 2023. The country’s real overall output growth is rebounding to 3.9% backed by recovery across diverse sectors of the economy. UAE’s real GDP growth stood at 3.6% in 2023 and the country’s financial sector recorded robust performance in 2023, achieving 11.1% growth in total assets to over AED 4 trillion.

 

UAE’s manufacturing sector added USD 54bln to GDP

Central Bank of UAE reports the UAE’s manufacturing sector made a significant contribution to the country’s economy in 2023 adding 197 billion UAE dirhams (USD 54 billion) to the nominal GDP. The manufacturing sector currently accounts for 14% of the UAE’s non-oil GDP.

 

More 160 new Indian businesses set shop in DMCC

Dubai Multi Commodities Centre (DMCC) attracted over 160 new Indian companies last year adding to the almost 3,900 Indian companies across its district and seeking to build upon the USD 85 billion worth India-UAE non-oil trade corridor. The UAE’s bilateral trade with India surged 16% in 2023 after the implementation of the pioneering Comprehensive Economic Partnership Agreement (CEPA). 

 

Dubai appoints 22 AI officers to lead tech transformation

Dubai appointed 22 Chief Artificial Intelligence Officers across different government entities to propel the emirate into a pioneering model for AI- enabled government operation and establish it as a global leader for innovation. This move reinforces Dubai’s goal to cement its leadership in development and deployment of AI solutions. 

 

Sharjah Airport expansion project on track

Officials at Sharjah Airport Authority (SAA) confirmed the expansion project for the passenger terminal and central facilities station is progressing according to schedule. The expansion project valued at AED2.4 billion encompasses 18 packages of various expansion initiatives.