This occurred at the same time that the World Bank released its latest Gulf Economic Update (GEU), which stated that increased oil receipts combined with a gradual rebound in the UAE’s non-oil sector will boost fiscal revenue, causing a fiscal surplus to be roughly 4.4 percent of GDP in 2022.
According to the estimate, the UAE’s current account surplus will reach 11.2 percent of GDP in 2022 thanks to recent bilateral free trade agreements with Asian countries and robust oil exports. However, the bank anticipated that real GDP would drop to 4.1 percent in 2023 due to a potential slowdown in global demand and tighter financial conditions.
The Gulf Cooperation Council’s (GCC) economies are anticipated to grow by 6.9 percent in 2022 before slowing to 3.7 percent and 2.4 percent in 2023 and 2024, respectively, according to the GEU.
Issam Abousleiman, regional director for the GCC at the World Bank, stated “There is an excellent and timely opportunity to diversify the economy further using a green growth strategy, and playing a leading role in the global transition to low-carbon economies“.
The analysis predicts that the combined GDP of the GCC nations would be close to US$ 2 trillion in 2022.
The GDP of the GCC as a whole would increase to an anticipated US$ 6 trillion by 2050 if business as usual were to continue. However, the GDP of the GCC nations might increase to approximately US$ 13 trillion by 2050 if they adopted a green growth plan that would aid and speed up their economic diversification.