The UAE’s economic strength continues to garner international recognition, with a particular focus on the robust growth of its non-oil sectors. While oil-producing nations often experience such growth, the UAE stands out for its diversified story. International organizations and experts are now discussing the impressive expansion in areas like real estate, tourism, manufacturing, and the knowledge economy.
In its latest report, the Organization of the Petroleum Exporting Countries (OPEC) highlights the UAE’s remarkable economic performance, especially in non-oil sectors. Business and investor confidence remain high, aligning with executives’ expectations for sustained growth and expansion. OPEC attributes this success to the UAE’s strong economic policies and strategic international partnerships, positioning the nation for continued upward trajectory and enhanced economic sustainability.
The UAE’s economic relations have also received praise, particularly through partnership agreements with countries worldwide. The Central Bank of the UAE has signed currency swap deals with Ethiopia, Seychelles, and Indonesia, facilitating cross-border transactions and promoting cooperation in the payment system. Additionally, the UAE recently completed a Comprehensive Economic Partnership Agreement (CEPA) with Mauritius, eliminating tariffs and bolstering trade ties. This agreement strengthens the UAE’s commercial and diplomatic presence in Africa, further supporting its diversification efforts beyond oil.
Notably, the UAE’s non-oil sector expanded by 6.7% year-on-year in the fourth quarter of 2023, according to a previous OPEC report. Dubai’s Department of Economy and Tourism reported a record year for tourism in 2023, with international visitor numbers surpassing 2019 levels by 19.4%. The Central Bank of the UAE has maintained a steady main interest rate of 5.4% since July 2023, while the Purchasing Managers’ Index (PMI) stands at 55.3, signaling ongoing economic growth.
In summary, the OPEC report underscores the UAE’s significant strides in diversifying its economy beyond oil, earning the trust of both local and foreign investors. This remarkable success is a testament to the visionary leadership that has guided the UAE toward a knowledge-based, non-oil-dependent economy through brilliant policies.