UAE ECONOMY GREW 8.2% IN Q1

The United Arab Emirates’ economy grew by an es?mated 8.2% in the first quarter, buoyed by higher oil produc?on, the central bank said.

Real gross domes?c product (GDP) is expected to grow 5.4% this year and 4.2% next year, the central bank said. There was a high probability of stronger growth due to higher oil produc?on and a government pledge to double the manufacturing sector’s size by 2031. Hydrocarbon GDP climbed an es?mated 13% in the first quarter when oil produc?on averaged 2.95 million barrels per day.

“Shocks to global oil supply and demand have added to oil price vola?lity and bolstered the level of the price. Depending (on) the developments in global economic ac?vity, recessionary expecta?ons and geopoli?cal tensions, there may be space for increased oil supply to balance the markets and s?mulate global growth,” the central bank said.

Real GDP is expected to grow 5.4% this year and 4.2% next year, the central bank said. There was a high probability of stronger growth due to higher oil produc?on and a government pledge to double the manufacturing sector’s size by 2031.

The UAE is the only Gulf Arab country that does not have a price cap on fuel and, like its neighbours, imports most of its food. Transporta?on infla?on with a 12.7% weight in the consumer basket surged 22% in the first quarter.

Average residen?al property prices in Dubai jumped 11.3% in the first quarter. Off-plan sales surged 94.6% in the quarter, while secondary market sales were up 76.1%.

“Upward pressures on infla?on would result from higher wages and higher rents. As a result, domes?c demand shall increase and might put further pressure on prices, especially on the non-tradeables like rents,” the central bank said.