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UAE economic expansion to continue, after posting 3.8% growth in Q1: OPEC

OPEC+ decided Sunday to extend supply cuts until 2025
  • The UAE's economic expansion, according to the OPEC report, will continue, noting that the key sectors of the country's economy have posted significant growth
  • The report highlighted the sectors that posted growth were transportation and storage (10.9%), construction (9.2%), and accommodation and food services (7.8%)

Vienna, Austria–The Organization of the Petroleum Exporting Countries (OPEC) has confirmed that the UAE’s economy grew by 3.8 percent in the first quarter of 2023.

In its September 2023 report, OPEC said it expects the UAE’s economic expansion to continue, noting that key sectors of the country’s economy have seen significant growth.

The OPEC report highlighted that the most prominent sectors with significant growth were transportation and storage (10.9 percent), construction (9.2 percent), and accommodation and food services (7.8 percent).

The report also noted that the travel and tourism sector in the UAE is playing an important role in driving economic growth. In the first half of 2023, the number of passengers at Dubai International Airport and international visitors to Dubai exceeded pre-pandemic levels.

According to the OPEC report, the number of international visitors to the UAE is expected to increase by nearly 40 percent in 2023, according to Oxford Economics. This would exceed the 2019 level by 17 percent.

The report also stated that the Central Bank of the UAE has mirrored the interest rate policy of the US Federal Reserve, keeping the key interest rate unchanged at 5.4 percent.