United Arab Emirates: 2022 Article IV Consultation-Press Release; and Staff Report

IMF Staff Country Reports, June 26, 2023

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Economic growth strengthened in 2022, benefitting from a rapid and effective coronavirus disease response, supportive fiscal measures, and the benefits of earlier social and business-friendly reforms.
The economic outlook remains positive, supported by strong domestic activity.
Strong reform efforts continue under the UAE 2050 strategies.
Long-term vulnerabilities from global decarbonization efforts are being addressed through commitments to climate initiatives and a balanced approach to energy transition.

Overall, gross domestic product is projected to grow at 3.6 percent in 2023.
Non-hydrocarbon growth is projected at 3.8 percent in 2023, driven by continued tourism activity and increased capital expenditure.
Strong domestic activity underpins the positive outlook.

Advancement on Comprehensive Economic Partnership Agreements will boost trade and integration in global value chains and further attract Foreign Direct Investment.
Benefits of artificial intelligence and digitalization, and investments in enabling infrastructure, will further support economic diversification.

Investments in enabling infrastructure will help foster a smooth energy transition.
The report highlights efforts to address vulnerabilities from global decarbonization through commitments to climate initiatives and a balanced approach to energy transition.

Rapid and effective coronavirus disease response contributed materially to the 2022 growth strengthening.
Supportive fiscal measures and prior social and business-friendly reforms amplified the recovery.
Tourism activity and capital expenditure are central near-term drivers of non-hydrocarbon growth.
Digitalization and artificial intelligence are identified as important enablers of diversification and productivity.