Vienna, Austria–The UAE’s economy remains robust, with constant contributions from the non-oil sector, especially from tourism, leisure, and real estate, according to the OPEC’s Monthly Oil Market Report (MOMR) for October 2023.
MOMR noted the UAE’s tourism sector, which accounts for more than 16% of the country’s GDP, continued to rebound and even exceeded the pre-pandemic level in terms of the number of visitors.
Indeed, it said, the number of visitors to Dubai rose by 19% y-o-y in H1-23.
“The government also launched reforms to attract further investments into the economy, such as allowing 100% foreign ownership of onshore companies and lowering costs to establish businesses. Moreover, the authorities have been implementing fiscal policies to encourage the development of new sectors that are part of the country’s “We the UAE 2031” vision,’’ the monthly report added.
September’s S&P Global United Arab Emirates PMI reflects this optimism, as it rose to 56.7 from 55 in the previous month. This marked the strongest growth in the country’s no-noil private sector since June, as new orders increased to their highest level since June 2019.
Looking ahead, the MOMR expects growth prospects in the UAE’s non-oil GDP to continue to build momentum, supported by increased business confidence, government reforms and expansion in household spending.
