The UAE economy is set for stronger growth, recovery, and prosperity in the second half of the year, according to projections by the International Monetary Fund (IMF) and World Bank.

With a 7.9% growth rate in 2022, the UAE’s economy is expected to maintain its upward trajectory in 2023. The IMF said in its 2022 Article IV assessment that the country is gaining an advantage from its tourism activity and higher capital expenditure.

The IMF said, “The UAE is poised for positive economic growth as it is projected to achieve a 3.6% increase in its gross domestic product this year, driven by robust domestic activity.”

As for the World Bank, it estimated that the real GDP of the UAE would grow by 2.8% in 2023, as the non-oil sector is expected to attain steady growth of 4.8%, due to robust domestic demand, particularly in tourism, real estate, construction, transportation, and manufacturing sectors.

Moreover, in a press conference announcing the new World Bank Gulf Economic Update (GEU) titled, ‘The Health and Economic Burden of Non-Communicable Diseases in the GCC,’ bank officials noted that the current account balance in the UAE is expected to rise to 11.7% in 2023.

The report noted that the UAE is expected to attain a surplus in public finance of 6.2% in 2023. The assessments from international institutions align with projections by the Central Bank of the UAE in its quarterly economic review, wherein it said that the UAE economy continued to grow at a solid pace in the first quarter of 2023.

Meanwhile, Saudi Arabia’s overall GDP growth is expected to slow from 8.9% in 2022 to 2.4% in 2023, due to an expected 3% decline in average oil production, according to the Institute of International Finance.