The National Bank of Kuwait rolled out a report recently forecasting economic growth of 5.3% on average spanning through 2022-23. An impressive feat in comparison with 3.8% of 2021. The surge may be due to the courtesy of the surging oil output and easing COVID-19 restrictions.
The gateway opener would be the oil sector GDP, with the stats of expanding by a solid front of 10% annually on elevated oil output, scoped at an astonishing 3.3 million barrels per day by December of 2023; aided fully by the unfurling OPEC+ production slashes. There is also a sector expansion underway, being overlooked by the local arm Abu Dhabi National Oil Company—ADNOC ($127 billion) for the duration of the next five years, with the inclusion of a hitch in the capacity of oil manufacture to a 5 mb/d.
The season of this development acts as an opportune time for other projects to find their footing—namely, the expansion of the Bab integrated facilities in Abu Dhabi (450 kb/d), the Integrated Gas Development Expansion Phase II (245 mcf/d) which works between Das Island and Habshan, and finally the Bu-Hasa onshore oil field development project (550 kb/d).
In light of the growth of 3.5% at a midpoint in this year and in 2023, the prospect for the non-fuel sector is predominantly booming in profit. Alongside the pandemic setbacks which are starting to alleviate, UAE is seeing more life in its globetrotting and real estate fields.
Straightforward exposures to Russia and Ukraine are meager due to the sensitivity of the situation (hardly 1% of the reported UAE total trade, 7% of total tourists in plain sight); nevertheless, a protracted and drawn-out war would thug largely on the economic stability of the country—since outside of its status quo, it is also a standard route of international trade and business hub thriving in several fields of net profit.
Moreover, in the real estate field, with the worldwide effect of inflation being offset on the economic market, UAE is seeing a step-by-step improvement in the property market from a mere 0.2% on average last year, to a 2.5% per annum over 2022-23 on supply chain disordering, high sustenance, petroleum rates and the probable recovery in the housing rentals and placement sector.
Green Agenda 2030 is an initiative taken with the planet’s sustainability in mind. Along with the 2050 Energy Strategy and the “Projects of the 50,”—stand as proof of the government’s attempts to ensure their country’s welfare. They’d succeeded in smart investments, diversification-centered policy approach to underpin the medium-term standpoint. Their common ground between digital and physical profit is one of the reasons the country has a very solid business outlook, its economy continues to thrive through natural disasters, and this feat is credited to the foundation of the government’s involvement in state affairs.
These enterprises have a common goal of advancing toward a flourishing economic transformation through a private sector growth that is not easily matched, which in turn would allure non-native investment of a ballpark estimate of $150 billion over the course of a decade; a strategy that would stimulate digitization among its citizens and pivot in the direction of a low-carbon environment for UAE’s future generations.
To ensure proper governing amidst its goals, a debt management office to emphasize transparency and keep track of ongoing financial assets had been established by the Dubai Government in April this year. However, it remains a mystery if this will reach any obligated GREs that face dilemmas as world-scale monetary conditions lay thick.