Dubai chamber explores opportunities
Dubai Chamber of Commerce’s second quarterly roundtable meeting of Business Groups and Councils for 2024 created a valuable platform to highlight prospects for economic growth and explore the promising opportunities.
The meeting of the sector-specific Business Groups and country-specific Business Councils overseen by the chamber attracted representatives from private sector companies operating in the emirate.
The session Attendees were briefed on the chamber’s latest programmes and initiatives, together with its future plans to drive the success of the private sector and ensure an enabling environment that supports the sustainable growth of businesses in the emirate. Participants discussed ways to enhance the competitiveness of local companies and improve their performance in line with global economic developments.
In 2025 UAE’s economy to grow 6.2pc
The Central Bank of the UAE (CBUAE) expects the country’s GDP to growth at 3.90 percent in 2024 before accelerating to 6.20 percent in 2025.
Non-oil GDP growth is projected to remain robust at 5.40 percent in 2024 and 5.30 percent in 2025, with hydrocarbon expanding 0.30 percent then 8.40 percent, according to the CBUAE’s latest economic review.
The UAE achieved a budget surplus of AED 85.60 billion, or 4.50 percent of GDP, last year.
The country’s GDP grew 4.30 percent during the fourth quarter (Q4) of 2023.
In May 2024, the UAE’s seasonally adjusted Purchasing Managers’ Index (PMI) remained unchanged at 55.30.
Credit facilities for UAE’s business and industrial sectors
The cumulative credit balance in the UAE’s business and industrial sectors rose to 757.4 billion dirhams ($206.2 billion) in the first quarter of the year, up from 741.8 billion dirhams at the end of 2023.
A release from the Central Bank of the UAE showed that credit facilities extended just by the country’s national banks to these sectors reached 15.6 billion dirhams in the three months of the year.
Comparing month-on-month figures, the credit balance saw a rise of 9.3 billion dirhams in March compared to the previous month, reflecting a steady upward trend in lending activities, the Emirates News Agency said.
Year-on-year, the sectors experienced a substantial 3.02 percent increase in credit availability, amounting to 22.2 billion dirhams from 735.2 billion dirhams in March 2023, showcasing sustained financial support over the past year.
National banks emerged as the primary financiers, contributing 841.7 billion dirhams or 90 percent of the combined credit balance for these sectors by the end of the first quarter of 2024, according to WAM.
In contrast, foreign banks held a smaller share, providing 84.3 billion dirhams, highlighting the dominant role of domestic financial institutions in driving economic growth.
GCC growth set to pick up from Sep
The anticipated interest rate cuts and a projected boost in oil output will lead to a significant pick up in GCC economic growth momentum from September, analysts at Capital Economics said.
They said the decision by the Organisation of the Petroleum Exporting Countries to keep output low until October would slow the growth momentum.
In its latest Middle East and North Africa Gross Domestic Product report, a UK-based independent research firm warned that Opec and its allies have implemented substantial output cuts since late 2022, totalling 5.86 million barrels per day, or about 5.7 percent of global demand.
Earlier in June, Opec+ extended 3.66 million barrels per day of cuts until the end of 2025 and prolonged 2.2 million bpd of voluntary cuts until September 2024. The voluntary cuts will be phased out gradually from October 2024 to September 2025.
| United Arab Emirates | ||||||
|---|---|---|---|---|---|---|
| Details | Last | Previous | Highest | Lowest | Value | Reference |
| Currency | 3.67 | 3.67 | 3.68 | 3.66 | Jun/24 | |
| Stock Market | 9012 | 9013 | 10671 | 3304 | points | Jun/24 |
| GDP Annual Growth Rate | 2.5 | 3.8 | 12.8 | -9.1 | percent | Sep/23 |
| Unemployment Rate | 2.95 | 2.97 | 4.29 | 1.15 | percent | Dec/23 |
| Inflation Rate | 3.81 | 3.91 | 12.3 | -2.71 | percent | May/24 |
| Interest Rate | 5.4 | 5.4 | 5.4 | 0.15 | percent | May/24 |
| Current Account to GDP | 9.3 | 11.7 | 25 | 0.1 | percent of GDP | Dec/23 |
| Government Debt to GDP | 38.3 | 36.9 | 38.3 | 2.7 | percent of GDP | Dec/21 |
| Government Budget | 4.5 | 9.9 | 13.5 | -17.7 | percent of GDP | Dec/23 |
| Manufacturing PMI | 55.3 | 55.3 | 61.2 | 44.1 | points | May/24 |
| Corporate Tax Rate | 9 | 0 | 9 | 0 | percent | Dec/23 |
| Personal Income Tax Rate | 0 | 0 | 0 | 0 | percent | Dec/23 |