UAE economic outlook stands buoyant in new year: Juwai IQI

Inayat-ur-Rahman, Business Editor

The UAE GDP growth should meander around 8-9% in 2023 due to oil boom and global investors’ confidence in the country. This is significant news for the country as global economy slows down. Positive signal to the investors at the macro level.

Gulf today conducted an exclusive interview with Kashif Ansari—Co founder and Group CEO of Juwai IQI based in Kuala Lumpur. Kashif is currently visiting Dubai on his regional meeting with top clients based in the city. Kashif shared his thoughts.

In 2023, three regions would be booming amid fragilities in the global economy ie GCC. Asian and Africa.  Most of the global players would continue to look for opportunities in trade and commerce with GCC including UAE, Saudi Arabia and Qatar.

Kashif’s optimism comes from the fact that real estate market is having tremendous growth with average transactions hitting $1 billion daily. According to Economist magazine dated Sept 22/2022

Dubai is the world’s resurgent entrepot. The United Arab Emirates, a seven-member federation that includes Dubai, is forecast to add 4,000 new millionaire residents this year, more than any other country. That is welcome news for a property market which contributes 8% of GDP. “

Secondly, SME growth is having macro impact on the economy which has accelerated growth momentum.  

Emirates Development Bank,would focus on financing SMEs in the country. SME is a backbone for the country’s economic growth.  It is expected to boost the financial inclusion of SMEs in the UAE and give them access to strategic funding options.  Under the strategic initiative, EDB will guarantee up to 50 per cent of the funding extended to SMEs by ADCB, the third biggest lender in Abu Dhabi by assets. It’s going to bolster sustainable development in country’s SME landscape.

Thirdly, technology has become the hallmark of UAE in rapid transformation of digital infrastructure and assets. Starts up are playing key role in boosting country’s strategic position globally in terms of technology.

Technology and finance are growing hand in hand. In fi nance the Gulf’s $3trn of re­ serve and sovereign assets will grow, leading to more investments abroad.  

Wealth generation and per capita income will touch new highs in 2023 making UAE as of the leading economies globally.

Finally, oil prices to stay higher in 2023 amid supply constraints and growing demand once china opens up. At Juwai IQI, we expect oil prices to trade between $83 and $127/barrel in 2023 based on the premise that oil demand curve remains stronger than supply line.

So if we analyze the macro economic picture of UAE and GCC, our stance is very clear, we are bullish on the country’s economic outcome that’s going to be significant for the boom time. UAE is back on the global investors radar with strong GDP growth in 2023.