UAE to become the fastest growing economy in the Gulf - 2023

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UAE economy is set to outpace Saudi Arabia
Dubai – According to the International Monetary Fund (IMF) latest projections, the United Arab Emirates (UAE) will be the fastest growing economy in 2023. It is estimated that the UAE economy will lead the region with a growth rate of 4.2%. It will outpace Saudi Arabia (3.7%), Bahrain (3%), Oman (4.1%), Kuwait (2.6%) and Qatar (2.4%) to become the fastest growing in the Gulf region. Similarly, the IMF forecasted the UAE GDP to grow by 5.1% in 2022.

UAE thrives while global economy slowdown
The IMF report considered higher inflation, tightening financial conditions, Russian-Ukrainian war and effect of Covid-19 pandemic while computing the economic forecast. As one of the best market research companies in UAE, we can validate the projections of the IMF latest report. While the global economy is currently experiencing challenges, UAE is set to witness economic recovery thanks to strong government initiatives to boost the economy.

UAE Government initiatives to overcome the global economic slowdown
The UAE government has taken several measures to handle inflation. This includes a new policy to stabilize prices of basic food items. Furthermore, H.H. Sheikh Mohamed bin Zayed directed the restructuring of the Social Welfare Programme for low-income citizens. The budget was doubled from AED 14 billion to AED 28 billion which will have a positive impact on the growth of UAE economy.

Impact of Economic Growth on Consumer Spending
The consumer spending in UAE has increased as a result. Furthermore, the drop in petrol prices and uplifting of most Covid-related restrictions is having a positive effect. These initiatives are going to further support consumer spending and along with positioning UAE as one of the major retail and Food and Beverage (F&B) hubs in the Middle East region. A survey by Dubai’s Department of Economy and Tourism suggests half of the emirate’s residents (52%) dining out at least three times a week.