UAE economy forecasted to grow 4.2% in 2022

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The UAE expects its economy to grow 4.2 per cent in 2022, supported by a rebound in oil. Growth in the oil sector’s gross domestic product is set to be at 5 per cent this year, an increase from last year’s 2 per cent contraction, according to preliminary data from the country’s central bank. Non-oil GDP is expected to remain in line with 2021. Still, ‘economic projections are susceptible to uncertainties amidst Covid-19 repercussions,’ it said in a quarterly economic review. Gulf countries, including the UAE, were dealt with a double whammy in 2020 as the spread of the coronavirus pandemic was accompanied by a drop in crude prices, the main source of income for the region. Last year, sentiment was better as travel restrictions eased and Dubai’s Expo 2020 was launched, attracting millions of visitors. The UAE’s daily virus cases have increased to more than 2,000 in recent days, a sharp rise from below 100 cases less than a month ago. The International Monetary Fund expects the UAE’s economy to grow more than 3 per cent this year and hover around the same levels into 2026 at least.