2023-12-13 22:01:16
Hossam Abdelnaby (Abu Dhabi)
A report prepared by Oxford Economics and commissioned by the Institute of Chartered Accountants in England and Wales (ICAEW) expected that growth in the UAE’s domestic product will double during 2024 on an annual basis to reach 4.8%, up from 2.4% in 2023.
The “Latest Economic Developments Report” report confirmed that although near-term growth may face challenges due to OPEC+ production quotas, the UAE’s higher reference production levels indicate the possibility of easing these restrictions in 2024.
The report said that current expectations for oil production in the UAE amount to 3.28 million barrels per day, a decrease of 1.2% compared to last year.
He expected that this trend will continue, with expectations of an average production of 3.35 million barrels per day in 2024, and a further increase to 3.6 million barrels per day in 2025, noting that despite this increase, the production level is still much lower than the country’s maximum production capacity. UAE, which amounts to about 4.5 million barrels per day.
Economic activities
The Oxford Economics report stated that the UAE is actively seeking to expand the non-oil sector as part of its economic development plans, as the recent successful sale of sovereign bonds, which raised $1.5 billion, contributed to supporting these efforts.
He stressed that the expected integration of the country into the BRICS group in January constitutes a milestone, as it would stimulate trade and investment opportunities and enhance the diversification and growth strategy, expecting the sectors of logistics services, technology, infrastructure, and finance to be among the main sectors.
According to the Oxford Economics report, the UAE’s financial prospects appear positive, as financial surpluses are expected to exceed 5% of GDP in the near and medium term.
The report added that in 2022, the fiscal surplus exceeded 9% of GDP, which is the second highest surplus in the region, and this was driven by the amazing growth of revenues of 31.8%, which is largely due to the rise in oil revenues, noting that enhancing this flexibility Finance has been largely achieved through the growth of the non-oil sector, which thus provides a stable alternative source of revenue.
The report indicated that the UAE is making significant progress in financing green sukuks, allocating funds to sustainable projects, and enhancing its transition to zero emissions, pointing out that the UAE is expected to intensify its efforts towards fulfilling its obligations related to reducing zero emissions, after the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28),
Sustainable future
Hanadi Khalifa, Director of the Middle East Office of the Institute of Chartered Accountants (ICAEW), said: By hosting the United Nations Climate Change Conference COP28, the UAE strengthens its global role and also consolidates its commitment to building a sustainable future, stressing that by aligning its economic strength and capabilities with sustainable initiatives, the UAE seeks Striving to be at the forefront of this important transition, where economic progress and environmental protection are so closely linked.
For his part, Scott Livermore, economic advisor to the Institute of Chartered Accountants (ICAEW) and chief economist and general manager at Oxford Economics Middle East, explained that the UAE’s adoption of green sukuk financing is just one aspect of its broad agenda and ambitions for sustainability.
sustainable development
Scott Livermore said that the recent agreements concluded by “Masdar” with Jordan and the Netherlands to produce and export green hydrogen confirm the country’s commitment to sustainable economic development, concluding by noting that the UAE is not only making its way towards transitioning to an emissions-free economy, but is becoming a role model. .
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