The Central Bank of the United Arab Emirates (CBUAE) has forecast annual real GDP growth to expand by 4.3% next year.

“After three-quarters of high growth, the UAE’s economy maintained a solid footing in Q4 2022, reflecting a strong performance of both the oil and the non-oil sector,” according to the bank’s fourth Quarterly Economic Review.

Growth is estimated at 7.6% for the entire year. In 2023, the CBUAE is maintaining its forecast to remain unchanged at 3.9%, Zawya reports.

Although oil production is forecast to moderate to move in line with the OPEC+ agreements, the non-oil sector is predicted to keep supporting aggregate output, despite being at a more modest pace.

“Oil production averaged 3.1 million barrels per day in Q4, and the UAE hydrocarbon GDP is estimated to have grown by 10% Y-o-Y, in line with the OPEC+ agreements (10.1% for 2022),” the review went on to say.

Furthermore, following the strong growth in the previous quarter, the UAE’s non-oil sector is forecast to have grown at a pace similar to that of Q4 2022. The central bank predicted non-oil GDP growth for last year at 6.6%, as per the review.

The bank emphasised the principal drivers of this robust performance to be down to the construction, manufacturing and real estate sectors.

“In addition, the FIFA World Cup in Qatar and other global events that took place in the region boosted travel and tourism to the UAE. For 2023 and 2024,” the central bank’s review continued.

For this year and next year, the Central Bank of the United Arab Emirates forecasts real non-oil GDP to grow by a respective 4.2% and 4.6%, in line with growth trends across the globe.