The Organisation of the Petroleum Exporting Countries (OPEC) has stated that the UAE's non-oil sector continues to show strong growth, with the latest data and economic indicators reflecting substantial expansion.
Indeed, as part of its Monthly Oil Market Report released on Tuesday, OPEC highlighted the UAE's ongoing efforts to diversify its economy, citing initiatives like 'Operation 300bn,' which aims to enhance manufacturing, broaden export markets, and attract foreign investment.
The report stated that the governments of Abu Dhabi and Dubai will continue to back their economies' diversification efforts. Authorities are implementing policies to foster the development of new sectors such as digital, fintech, creative industries, scientific innovation, renewable energy, and education, according to a Zawya report.
Furthermore, it also noted that robust performance in sectors like tourism, finance, and construction remains a key driver of growth. This is further emphasised by the UAE's strong PMI, which stood at 54 in March, slightly down from 55 in both February and January.
In the week ending 31st March, total oil product stocks in Fujairah increased by 4.96 million barrels (mb) week-on-week (WoW), reaching 24.34 mb, as reported by FEDCom and S&P Global Commodity Insights.
At this level, oil stocks were 4.07 mb higher compared to the same week last year, the report goes on to add.
Moreover, oil demand growth has been revised down to 1.3 million barrels per day (bpd), a “minor adjustment” primarily due to the anticipated impact of tariffs on the market, according to the Vienna-based organisation’s report on Monday. The revised forecast suggests an increase of 40,000 barrels per day in demand, The National reports.
Demand in non-OECD countries is expected to rise by nearly 1.25 million barrels per day, largely driven by strong demand from China, the world’s second-largest economy and top energy consumer, the report added.
For 2026, OPEC slightly adjusted its global demand growth forecast to approximately 1.3 million barrels per day. Demand in OECD countries is projected to rise by around 100,000 bpd, while non-OECD nations are expected to see an increase of 1.2 million bpd.
“In the OECD, oil demand is expected to be pressured by the likely impact of the new US tariffs on imports. In the non-OECD, despite having been burdened with considerable tariffs by the US, China is expected to drive oil demand, supported by strong mobility and industrial activity,” OPEC stated.