The UAE’s economy is experiencing significant growth, especially in non-oil sectors such as real estate, tourism, and manufacturing, according to the Organisation of the Petroleum Exporting Countries (OPEC).
Inflation and Consumer Price Index Trends
In OPEC’s August 2024 Monthly Oil Market Report (MOMR), housing, water, electricity, gas, and other fuels, which make up over 40% of the Consumer Price Index (CPI), saw a slight rise to 6.7% year-over-year in June, compared to 6.6% in May. Food and beverage inflation remained stable, increasing slightly to 2.4% YoY in June from 2.3% YoY in May.
Strengthening International Economic Ties
The UAE Central Bank has signed currency swap agreements with Ethiopia, the Seychelles, and Indonesia, aimed at facilitating cross-border transactions and enhancing payment system cooperation. Additionally, the UAE finalized a Comprehensive Economic Partnership Agreement (CEPA) with Mauritius to eliminate tariffs and boost trade, further strengthening its economic and diplomatic ties in Africa.
Strategic Positioning for Sustained Growth
These robust economic policies and strategic international partnerships place the UAE in a strong position to sustain its upward trajectory and further diversify its economy, particularly in the non-oil sectors.
Reference: Arabian Business
