The United Arab Emirates is set for an economic revival in 2024, with real GDP growth predicted to reach 4%, according to BMI Research, a subsidiary of Fitch Solutions. The recovery of the oil sector will drive this growth, with both Abu Dhabi and Dubai expected to see their growth rates accelerate.
Ramona Mubarak, Head of Risk Management for the Middle East at Fitch Solutions, expects non-oil GDP growth in the UAE to reach 5% in 2024. Saudi Arabia is also predicted to see strong growth at 4.6%, while Oman and Kuwait are expected to grow at 3% and 1.8%, respectively. Despite an increase in transportation costs, average inflation is expected to decrease from 3% in 2023 to 2.1% in 2024 due to lower rent growth and food prices. Non-oil activity is anticipated to remain strong, supported by increased investment and strong household spending.
The acceleration in growth is primarily attributed to the recovery of the oil sector, which is expected to grow by around 1% in 2024 after a contraction of 3.2% in