Strong growth in consumption due to increased employment and wages
The Central Bank: 7.6% expected growth in the country's gross domestic product during 2022
The Central Bank revealed positive indicators in all economic sectors in the country.
The Central Bank revealed positive indicators in all economic sectors in the country during the third quarter of this year, as it raised its expectations for the growth of the real GDP of the country to 7.6% at the end of the current year 2022, thus amending its previous estimates, which were by 6.5%.
In the economic report for the third quarter of 2022, the Central Bank confirmed that there is strong growth in domestic consumption, supported by an increase in employment and wages in the private sector, which recorded higher levels than in the period before the “Covid-19” pandemic.
In detail, the Central Bank stated in the economic report for the third quarter of this year that the gross domestic product of the UAE continued to grow at a strong pace during the third quarter after it also increased in the first half, supported by another increase in oil production, as well as a significant improvement in non-oil domestic product. .
The Central Bank expected the country's real GDP to grow by 7.6% this year, supported by the oil and non-oil sectors.
The Central Bank indicated that it had revised its forecast for non-oil GDP growth, as it was expected to grow by 6.1% this year and 4.2% for the next year.
And the Central Bank indicated in its report that, after the steady increase on an annual basis in the real oil gross domestic product in the second quarter of 2022, the average oil production in the third quarter reached 3.17 million barrels per day.
He added that the country's hydrocarbon gross domestic product grew by 13% on an annual basis, in line with the agreements of the "OPEC Plus" group, pointing out that the growth rate during the first nine months of this year reached 14.3% compared to the same period last year.
And he added that, starting in November 2022, OPEC agreed to reduce oil production by two million barrels per day, which led the Central Bank to revise its forecast for real oil GDP growth, to reach 11% for the current year and 3% for the year 2023.
The Central Bank indicated that these expectations depend on the development of the war between Russia and Ukraine, as well as the possible slowdown in the performance of global economies, which may necessitate further production cuts.
The Central Bank report stated that government revenues increased on an annual basis during the first half of this year by 46.7% to reach 305.6 billion dirhams as a result of the increase in taxes and social contributions.
He explained that on the expenditure side, the total during the first six months of this year amounted to 187.6 billion dirhams, representing an increase of 4.9% compared to the same period last year.
He added that as a result, the consolidated public finance balance recorded a surplus of 118 billion dirhams, compared to a surplus of 29.5 billion dirhams during the first half of last year.
The report emphasized that the UAE has a dynamic private sector that benefits from investment-attractive strategies and legislation as well as banking support, as private sector financing increased by 4.9% by the end of September 2022 on an annual basis compared to the same period in 2021.
He pointed out that the Purchasing Managers' Index rose, supported by the sharp expansion in commercial activity and high demand, which led to an increase in production, as well as a rise in the business confidence index, as it reached 109.8 points for the third quarter of this year. Manufacturing companies remained quite optimistic, with a rate of 61%. Confirming the improvement in economic conditions in the third quarter of 2022.
According to the Central Bank report, domestic consumption was strong during the third quarter of this year, supported by the significant rise in employment and wages in the private sector, which recorded higher levels than in the pre-COVID-19 period.
The report said that the insurance sector in the country continued its activity during the third quarter of this year, as this appears in the increase in the number of insurance policies in line with the increase in written premiums, which recorded at the end of the third quarter 36.7 billion dirhams, due to an increase in property and liability insurance premiums by 20.7% and an increase in health insurance premiums by 1.9% on an annual basis.
Dubai real estate
Dubai real estate
In the economic report for the third quarter of this year, the Central Bank confirmed that the real estate sector in Dubai witnessed, during the third quarter, a strong recovery in off-plan real estate sales as well as secondary real estate sales, with the latter recording the largest volume and value in a period of 12 years.
Dubai property sale prices increased on average by 25.5% year-on-year, while rental yield grew by 5.3%.
An increase in government revenues to 305.6 billion dirhams during the first half of 2022.
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