ABU DHABI: The real gross domestic product (GDP) growth of the UAE is projected to accelerate to 3.9 percent in 2024, fuelled by OPEC+'s announced significant oil production hike in the second half of 2024 and a recovery in global economic activity, according to the Spring 2024 Gulf Economic Update (GEU) issued by the World Bank.

The oil output growth is projected to reach 5.8 percent in 2024. Non-oil output will remain robust and continue to support economic growth in 2024, expanding at 3.2 percent, driven by strong performance in the tourism, real estate, construction, transportation, and manufacturing sectors.

The report stated that the UAE continued its strategic spending growth, supported development initiatives, and highlighted its commitment to sustainable, green, and digital growth.

It explained that the UAE maintained a strong current account surplus of 9.1 percent of GDP, supported by rising non-oil exports in tourism and commercial services, enhanced new investments, and trade agreements with key Asian and African markets.

The report highlighted the continued strength of financial reserves in most GCC countries in 2023, noting that the UAE recorded significant growth throughout the year. It emphasised that the substantial improvement in the external balances of GCC countries over the past decade, primarily driven by the oil and gas sector and the expansion of non-oil exports, has kept financial reserves at comfortable levels.

The report stated that the UAE approved a US$10 billion investment in tourism infrastructure and initiated the establishment of a large public-private partnership portfolio worth US$10.9 billion.

The report pointed out that the UAE is actively pursuing a series of structural measures and strategic investments to diversify its economy and enhance industrial capabilities. Key initiatives include Abu Dhabi's US$10 billion investment in tourism infrastructure, ADNOC Gas's US$13 billion gas expansion plan both globally and locally over the next five years, and the approval of a large public-private partnership portfolio worth US$10.9 billion in Dubai.

The report confirmed that the UAE also experienced a recovery in employment to pre-pandemic levels. Additionally, the Emiratisation strategy is being reinforced with a new budget of US$1.74 billion aimed at integrating 36,000 citizens into the private sector by 2024.