UAE economy continues to expand, new report finds
The UAE’s economy grew by 3.8% in the first quarter of 2023, according to a new report from the Organisation of the Petroleum Exporting Countries (Opec).
In its September 2023 report, Opec said it predicted the UAE’s economy would continue to expand, noting that key sectors of the country’s economy have seen significant growth.
The OPEC report said the sectors showing the most significant growth were transportation and storage (10.9%), construction (9.2%) and accommodation and food services (7.8%).
The report also said the travel and tourism sector in the UAE is playing an important role in driving growth in the economy. In the first half of 2023, the number of passengers at Dubai International Airport and international visitors to Dubai exceeded pre-pandemic levels.
The number of international visitors to the emirates in 2023 is expected to grow by almost 40%, the Opec report said, citing Oxford Economics’s figures.
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%.
Meanwhile, Standard & Poor’s Global Ratings said that it expects the banks of the United Arab Emirates (UAE) to report strong performances in 2023. In a new report, the credit rating agency said that “UAE banks will benefit from strong non-oil GDP growth, which will mitigate the impact of rising interest rates on credit growth”.
The report expects bank credit growth at UAE banks to rise to about 7% in 2023, from 5% in the previous year.
The report stated that the performance of UAE banks improved in the first half of this year due to the rise in interest rates, with high-interest rates expected to continue to generate increased profit for the banks.
Dubai looks to boost trade with France
Dubai International Chamber has opened a new representative office in Paris in order to boost trade and investment with France.
The opening comes soon after the inauguration of the chamber’s new office in Italy, further strengthening its presence in Europe and increasing the number of international representative offices to 24 across five continents.
The France opening is part of the ‘Dubai Global’ initiative, which aims to generate new business and talent to the emirate, while helping Dubai-based companies to expand in key international markets. Dubai Global aims to establish a network of 50 offices around the world by 2030.
At the opening of the Paris office, Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, said: “France is one of the strategically important global markets in which we are keen to establish our presence. Our network of international representative offices will play a key role in boosting Dubai’s non-oil foreign trade from AED 1.4 trillion (£311bn) to AED 2 trillion by 2026, in line with the goals of the emirate’s five-year foreign trade plan.”
He added: “We remain committed to achieving our strategic priorities and strengthening our efforts to attract companies from France and the wider European region to Dubai, as well as assisting Dubai-based companies that wish to expand into France. The new office in Paris unifies our efforts to enhance the reach and resilience of Dubai businesses in global markets while supporting the Dubai Economic Agenda by attracting new foreign direct investment to the emirate.”
Hend Al Otaiba, the UAE Ambassador to France, said: “Dubai International Chamber’s opening of a new Paris office is testament to the strength and dynamism of France-UAE trade relations. This milestone comes at a crucial moment in time as our economy is diversifying at full speed, presenting exciting new opportunities for French companies to expand their footprint in the UAE in fields varying from space and technology to health and luxury.”
A total of 472 French companies registered with Dubai Chamber of Commerce during the first seven months of 2023 alone, up 33% from the same period in 2022.
The value of non-oil bilateral trade between Dubai and France was AED 24.6 billion in 2022, equating to year-on-year growth of 33.7%.
