GDP growth in the UAE is forecasted at 3.4% in 2023, according to the World Bank, with a further rise to 3.7% in 2024.

According to the latest World Bank Gulf Economic Update (GEU) report, the bank forecasts the UAE’s non-oil GDP to hit 4.5% this year, fuelled by a robust performance in the tourism, real estate, construction, transportation, and manufacturing sectors, coupled with a rise in capital expenditure. Meanwhile, oil GDP is set to grow by 0.7% in 2023, reaching up to 3.6% in 2024.

In addition, the bank forecasts a rise in the UAE’s current account balance to 12.4% this year and 11.8% in 2024, Zawya reports. The UAE is set to reach a surplus in the fiscal balance by 5.2% in 2023 and 4.6% next year.

Furthermore, the report shows the Gulf Cooperation Council (GCC) region is expected to grow by 1% in 2023 before increasing to 3.6% in 2024 and 3.7% in 2025.

This growth is compensated by the non-oil sectors, which are predicted to grow by 3.9% this year and 3.4% in the medium term, bolstered by ongoing private consumption, strategic fixed investments, and accommodative fiscal policy.

The diversification and development of non-oil sectors positively impact the generation of employment opportunities within sectors and geographic regions within the GCC, according to World Bank senior economist Khaled Alhmoud.

“GCC countries have witnessed a remarkable increase in female labour force participation. Saudi Arabia’s achievements in advancing women’s economic empowerment in just a few years is impressive and offers lessons for the MENA region and the world,” said Johannes Koettl, Senior Economist at the World Bank.

The Saudi private sector workforce has achieved steady growth, hitting 2.6 million in early 2023. Meanwhile, the labour force participation of Saudi women rose from 17.4% in 2017 to 36% in Q1 2023.