The UAE’s gross domestic product (GDP) was up 8.2 percent in the first quarter of 2022, compared to the same period last year – mainly driven by higher oil production.
According to a report by the country’s central bank, the UAE produced an average of 2.95 million oil barrels per day – greatly contributing to the GDP rise. The report also showed positive growth in the country’s non-oil output, despite ongoing inflation.
The regulator anticipates a further rise in overall real GDP in 2022 and 2023 by 5.4 percent and 4.2 percent, respectively.
“There is a higher probability for growth being stronger, driven by higher oil production and by the government commitment to double the size of the manufacturing sector by 2031,” the regulator said in the report.
The UAE’s hydrocarbon GDP also rose by 13 percent annually, aligning with the OPEC+ pact to increase oil production for petroleum exporting countries. The report also added that increased oil supply could balance the market thus boosting growth globally.
“Depending the developments in global economic activity, recessionary expectations and geopolitical tensions, there may be space for increased oil supply to balance the markets and stimulate global growth,” the report read.
Oil GDP is expected to grow in 2022 and 2023, by 8 percent and 5 percent, respectively, with both years depending on any advancements made in the Ukraine-Russia conflict and further economic recovery, post Covid-19, the report read.
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