Supported by the positive impact of economic reforms and stimulus packages for the recovery from the pandemic

The Arab Monetary expects the economies of the Gulf countries to grow by 6.3% this year

The Emirates Development Bank launched the "SANAD" initiative to accelerate the growth of Emirati small and medium enterprises.


The Arab Monetary Fund expected that the countries of the Cooperation Council for the Arab States of the Gulf would achieve a relatively high growth of about 6.3% in 2022, compared to 3.1% in 2021, due to the sum of factors supporting growth in both the oil and non-oil sectors, and the positive impact of the applied economic reforms, in addition to To continue to adopt stimulus packages in support of recovery from the “Covid-19” pandemic.

The Fund said, in the "Arab Economic Prospects" report issued yesterday, that "the UAE economy is expected to grow by 5.8% in 2022 and 3.8% in 2023, supported by the early response to the pandemic and the national vaccination campaign that contributed to accelerating the recovery." The economic activities, especially with the continuation of supportive policies at the macroeconomic level, especially for the affected sectors and small and medium-sized companies, and the recovery of economic activities that benefited directly or indirectly from (Expo 2020 Dubai).

The report expected that the affected sectors would restore pre-pandemic levels, supported by the opening of activities by 100%, and the influx of foreign investments looking for safe environments, in light of the current geopolitical conditions, in addition to the positive impact of high oil prices and an increase in government capital spending, and the continuation of policies and reforms aimed at strengthening Non-oil GDP growth, supporting private sector growth, increasing productivity and attracting foreign investment.

The report pointed out that the rise in oil prices boosted government revenues in the UAE, which increased the strength of financial insulators in 2021, which reflected positively on the overall economic activity, noting that, according to the annual report issued by the Central Bank of the Emirates, the country recorded the highest rate. Real GDP growth among the countries of the Cooperation Council for the Arab States of the Gulf amounted to about 3.8%, and growth is expected to reach 5.8% in 2022.

The report attributed the main drivers of the booming economic activity in the UAE, during the past year, to the appropriate monetary position, monetary and fiscal stimulus initiatives, the global economic recovery, the improvement of real estate market dynamics in Abu Dhabi and Dubai, in addition to the increase in the value of UAE trade.

The report stated that the "Sanad" initiative, launched by the Emirates Development Bank, aims to accelerate the growth of Emirati small and medium enterprises with a value of 100 million dirhams, which contributes to facilitating and accelerating the process of access to flexible loans for companies looking to accelerate the growth of their businesses after the pandemic.

In a related context, the report expected that the growth rate of Arab economies as a whole would witness an increase of about 5.4% in 2022, compared to 3.5% in 2021, driven by many factors, foremost of which is the relative improvement in global demand levels, and the high growth rates of the oil and gas sectors, And Arab governments continue to adopt stimulus packages to support economic recovery, whose value exceeded $400 billion during the period 2020-2022.

The report pointed to the positive impact of implementing many economic reform programs in Arab countries and future visions and strategies, which aim to enhance levels of economic diversification, reform business environments, encourage the role of the private sector, support human capital, and increase levels of economic resilience in the face of shocks.

The report indicated that the Arab oil-exporting countries will benefit in 2022, from the increase in oil production quantities within the framework of the “OPEC Plus” agreement, and the continued increase in oil and gas prices in international markets, which will support the levels of public spending that stimulate growth in these countries, to raise the group’s growth rate. It is expected to reach 6% in 2022, compared to 3.2% for the group's growth achieved in 2021.

• The rise in oil prices boosted government revenues in the UAE, and reflected positively on the overall economic activity.

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