(MENAFN) According to the latest report from the Organization of the Petroleum Exporting Countries (OPEC), the United Arab Emirates (UAE) experienced significant growth in its non-oil sector throughout the entirety of 2023, with indications pointing towards continued expansion in 2024. OPEC's January report emphasized the positive outlook, stating, "The prospects for non-oil economic growth in the UAE are expected to continue to grow, supported by increased business confidence, government initiatives, and an expansion in household spending."
Key indicators, such as the Purchasing Managers' Index for the non-oil sector, saw a notable increase from 57 in November to 57.4 in December. This aligns with the ongoing expansionary trend observed in recent years. The heightened activity in the non-oil sector is not only indicative of economic growth but is also contributing to the creation of additional job opportunities, reinforcing the positive momentum.
The real estate sector in Dubai, a crucial component of the UAE's economic landscape, remains robust, buoyed by real estate sales reaching their highest levels in the past decade. The OPEC report highlighted the resilience of the real estate market, underscoring its role in supporting economic vitality.
Tourism, another key contributor to the UAE's gross domestic product, is on a path to recovery, constituting approximately 16 percent of the country's GDP directly and indirectly through its influence on the supply chain and related spending, as per Oxford Economics. Dubai Airport, recognized as the world's busiest international airport, has not only surpassed pre-COVID-19 passenger levels but has also witnessed a notable surge in visitors to the Emirate of Dubai. The report revealed a 22 percent annual increase in the number of visitors, reaching 13.9 million during the period from January to October 2023.
The OPEC report reflects a positive narrative for the UAE's economic diversification efforts, showcasing the resilience and growth potential of its non-oil sectors. With increased business confidence, government initiatives, and expanding household spending acting as catalysts, the country seems well-positioned for sustained economic development in the coming year.
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