S&P Global Ratings expects UAE’s GDP to grow by more than 5% in 2024
S&P Global Ratings expects the UAE’s GDP to grow by more than 5% in 2024.
Which is exceeding the agency’s forecast for the global economy of 2.8%.
Tatyana Lyskova, Assistant Managing Director for Corporates in the GCC at S&P Global Ratings, said:
“While the global economy has been growing at a weak pace.
We estimate that the UAE’s GDP grew by more than 3% in 2023.
Including growth of nearly 6% for the non-oil sector.
We expect that UAE economic growth will exceed global economic growth in 2024.”
For Dubai, the assistant managing director for corporates in the GCC at S&P Global Ratings expects continued strong momentum in the hospitality, wholesale and retail.
In addition to financial services sectors, which will drive growth in the coming period 2024-2025.
The UAE participates in the World Economic Forum “Davos 2024” with more than 100 leaders of companies, the private sector, and government officials. pic.twitter.com/Lsf9IYmnUd
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Property market in the UAE
Lyskova said that the number of mortgage transactions in Dubai has continued to grow.
With more than 80% of real estate transactions being completed in cash.
This is in contrast to the European property market.
Which has been characterized by weak purchasing power since 2022.
This is due to the rising interest rates and relatively high inflation.
The Chinese market also continues to pose a challenge for developers that rely on debt.
With margin compression and falling prices putting pressure on profitability.
In the United States, the picture has become a little brighter, with demand rising at the beginning of 2023 after a slowdown.
Investment trends in the UAE real estate market
Lyskova noted the sharp increase in the number of Russian buyers.
Making them one of the largest groups of investors in Dubai.
She said that Indian, European, and GCC buyers remain the largest investors, according to historical trends.
Lyskova pointed out that real estate developers have reported growth in off-plan property sales over the past three years.
Reaching a record level in 2023.
She said that the real estate sector has benefited from a recovery in demand from international buyers.
As well as continued interest from resident and regional buyers.
The UAE economy is expected to grow strongly in 2024, driven by a number of factors.
Including the continued recovery of the global economy, strong demand for Dubai’s tourism and trade sectors, and rising investment in the real estate market.
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