“Moody's” expects that the UAE will continue to record financial surpluses during the current year 2023, thanks to high oil prices, expecting at the same time that the non-hydrocarbon (oil) sector will grow by about 5 percent during the period from 2022 to 2024.
The agency indicated that economic diversification projects will partially compensate for the contraction of the hydrocarbon sector. Large government-sponsored infrastructure and diversification projects will support strong growth in the non-hydrocarbon sector through 2023. The agency estimated that the non-hydrocarbon sector during 2022 and 2024 will exceed the five-year average before the pandemic, although it will remain lower than it was during the period from 2010 to 2014.
According to the agency, the UAE is able to achieve financial surpluses even with oil prices reaching the level of $75 per barrel, as these surpluses will contribute to consolidating the assessment of the sovereign financial strength of the UAE and provide it with the opportunity to rebuild protective financial margins.
Source (Al Khaleej Emirati Newspaper, Edited)
