OPEC Predicts Economic Strength of the United Arab Emirates Will Continue

Illustration of crude oil (Photo: between)

JAKARTA - The Organization of the Petroleum Exporting Countries (OPEC) is confident that the United Arab Emirates (UAE) will continue its strong economic performance in 2023.

In its oil market report for August citing WAM, OPEC estimates that the UAE's non-oil sectors, particularly the tourism, leisure, and real estate sectors, will make a sustainable contribution to its economic growth, WAM said.

quoting Antara, the report indicated that the expansionary trend will continue, as evidenced in the country's Global Purchasing Managers' Index (PMI) in July, which reached 56, following 56.9 in June and 55.5 in May.

The UAE's real estate market remains on an uptrend as the country sees a huge surge in overall property transactions in the first half of 2023, the report said.

Home prices in Dubai, the economic hub of the UAE, grew 16.9 percent year-on-year in June, WAM said, citing a report by real estate information firm REIDIN.

On July 27, the UAE central bank raised its base interest rate by 25 basis points to 5.40 percent in line with the US Federal Reserve's 25 basis point increase, resulting in a total increase of 525 basis points in just one year, the report said.