UAE gross domestic product grew 7.6% in 2022

The UAE’s economy expanded 7.6 per cent last year, a senior official said, about double the rise in gross domestic product (GDP) recorded in 2021 as the Gulf state rebounded sharply from the Covid-19 pandemic.

While higher energy prices supported economic growth across the Gulf region’s oil exporters last year, a slowdown is forecast this year with a more uncertain oil price outlook and a challenging global macroeconomic environment.

The UAE aims to double the size of its economy by 2031 and diversify away from hydrocarbons.

“In order to do that, we need seven per cent GDP growth every year,” UAE Minister of Economy Abdullah bin Touq Al Marri told Reuters in an interview on the sidelines of the Investopia conference in Abu Dhabi on Thursday.

“This will come in with all the strategies we have put in place: the impact of the trade agreements, the openness to trade...the aspects of investments seen recently, into the energy transition, for instance, into green hydrogen,” he said.

Foreign trade up

The UAE’s foreign trade hit Dh2.2 trillion ($599 billion) in 2022, indicating a 17 per cent year- -on-year increase, and it has signed bilateral trade agreements with global partners spanning India, Israel and Indonesia. Talks with Turkey, and others, are underway.

The UAE will also host the UN’s flagship COP28 climate conference at the end of the year.

“The UAE’s strategy is an agile strategy...we are going to see challenges come in to the economy quicker and faster,” said Al Marri.

“And we need to find solutions not in government but with the private sector, they have a lot of solutions to these kinds of challenges,” he said.

Investors participation

Al Marri, who is also Chairman of Investopia, added that the re-opening of the Chinese economy could play a “big role” in reducing inflation around the globe, especially on goods and products coming from China, one of the UAE’s biggest trade partners.

The conference brings together over 2000 participants investors, government officials, thought leaders and entrepreneurs. The event comes in partnership with SALT, the Abu Dhabi Department of Economic Development and Crypto.com.

This year’s event has included 35 sessions and roundtables, where more than 100 speakers including investors, thought leaders, and decision-makers are discussing topics including institutional asset allocation, AI, emerging markets, venture investing, digital assets, mobility, biotechnology and more.

The event theme is focusing on “Envisioning Opportunities in Times of Change” and three sub-themes: Envisioning Opportunities in Today’s Economy, The Future of the Wealth of Nations, and Growth Opportunities in Times of Decarbonisation.

Doubling economic growth

During the opening session, Al Marri said that the UAE now is in the business of doubling economic growth, incoming foreign direct investment, and investment outflows.

“The 100 per cent full foreign ownership led to a significant increase in the demand of international companies to work in the UAE, reaching 300,000 companies, which would generate a revenue of Dh2.2 trillion,” he added.

Khaldoon Al Mubarak, managing director and Group CEO of Mubadala, said his group’s role is to help advance the nation's globally connected economic base by investing and partnering in the most promising and challenging sectors across over 50 countries.

“Our focus on disruptive innovation in the UAE shapes our future economic base and creates solutions that benefit others. It is why our plans to supercharge our growth are underpinned by collaboration, creating opportunities for people, and driving solutions to pressing global challenges,” he said.

— With inputs from Reuters and Wam