The United Arab Emirates economy is due to grow by an annual 5.4% in 2022, fuelled by the successful containment of the pandemic, according to the latest data from the Central Bank of the UAE.

The 2022 GDP growth forecast surpasses the 4.2% prediction the central bank made in April, as per its 2021 annual report published this week.

As growth momentum continues, the UAE economy is forecast to grow a further 4.2% in 2023.

The central bank data also shows UAE’s non-oil economy will grow by 4.3% in 2022, following 5.3% growth in 2021, yet will fall to 3.9% in 2023. Overall GDP growth will be bolstered by an 8% rise in the UAE’s oil economy this year, which is forecast to expand another 5% in 2023.

“Despite the numerous economic challenges caused by the Covid-19 pandemic in 2021, the UAE was able to excel on the economic front, and even improve its competitiveness, thanks to the overall vision and timely policies enacted by our leadership,” said Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs.

“The International Monetary Fund noted our nation’s unique ability to face the repercussions of Covid-19 in its Annual Report for 2021, which praised the UAE for its strong and proactive response to the pandemic’s effects,” he added.

Central Bank Governor Khaled Balama commented: “2021 contained a mix of challenges and opportunities. The CBUAE played a critical role in steering the nation through the economic challenges of the Covid-19 pandemic.”

The UAE economy has made a robust rebound, driven by the measures implemented to contain the Covid crisis as well as Dh388 billion ($105.72 billion) in support since the outbreak of the pandemic.

The International Monetary Fund has forecast the UAE economy will expand 4.2% in 2022, whilst Emirates NBD predicts 5.7% growth and Abu Dhabi Commercial Bank estimates 5.4% growth, bolstered by a steep rise in the oil sector.