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ABU DHABI / WAM
Oxford Economics, an independent economic advisory firm, has predicted that the UAE economy will grow by 4.4% in 2024. This growth is being driven by a number of factors, including government initiatives to support economic diversification.
In his statement to the Emirates News Agency (WAM), Scott Livermore, Chief Economist, Oxford Economics Middle East, and Managing Director, said that the firm is optimistic about the growth outlook in the UAE. “The government is working hard to support growth and economic diversification in the country through direct support and initiatives that make the UAE a more attractive destination for investment and business,” he said.
Scott highlighted government initiatives, including visa programmes, 100 percent foreign ownership of companies, and new trade agreements. These efforts align with the “We are the Emirates 2031” vision, with Dubai’s “D33” Economic Agenda focusing on growth, foreign investment, and trade, and Abu Dhabi aiming to double manufacturing by 2030. The Abu Dhabi National Oil Company (ADNOC) is investing in oil production and new energy sources like hydrogen.
Scott predicted a 4.2% growth in non-oil GDP this year, driven by diversification strategies, such as developing energy alternatives, tourism, financial services, and high-tech sectors. The travel and tourism sector remains vital for economic growth, along with real estate, creative industries, and logistics.
Oxford Economics’ chief economist expected continued growth in the real estate market and a strong recovery in travel and tourism, with Dubai surpassing pre-pandemic visitor levels by the first half of 2023.
Scott anticipates a 40 percent increase in international visitors to the UAE this year, driven by the UAE’s National Tourism Strategy to become a major global tourist destination by 2031.
Regarding corporate tax, Scott noted that the UAE’s tax rates are low compared to other countries, with exemptions for various entities, aiming to create a supportive business environment.