UAE’s consumer price index at the end of 2021 reaches 108.62

Statistics from the Federal Competitiveness and Statistics Centre (FCSC) revealed that the Consumer Price Index (CPI) at the end of 2021 reached 108.62, compared to 105.97 in December 2020, which puts the inflation rate at 2.5 per cent year-on-year, and at 0.02 per cent in December 2021 compared to November.

The 2021 Federal Competitiveness and Statistics Centre report showed that the rate of inflation in food and beverages stood at 3.71 per cent, with that of tobacco at 0.65 per cent, clothing and shoes at 0.51 per cent, while housing, water, electricity and gas saw a decrease of 2.58 per cent.

Household fixtures and equipment recorded a 2.13 per cent inflation rate, while that of health services stood at 0.45 per cent, communications at 0.13 per cent. Education was down by 0.20 per cent, restaurants and hotels saw a rise of 1.60 per cent, and miscellaneous goods and services decreased by 1.02 per cent.

The report also revealed Abu Dhabi recorded an inflation rate of 0.08 per cent in December 2021 compared to November, while the inflation rate in Dubai was 0.09 per cent, Sharjah at 0.11 per cent, Ajman at 0.11 per cent, Umm Al Qaiwain at 0.11 per cent, Ras Al Khaimah at 0.13 per cent, and Fujairah at 0.10 per cent.

These moderate inflation rates highlight the country’s economic stability and the effectiveness of its financial policy.

Strategically located between Europe, Asia and Africa, and just an eight-hour flight away from half of the world’s population, the UAE’s position at a global crossroads has enabled it become a genuine economic hub – a fulcrum for trade, exchange, innovation and value creation.

‘Projects of the 50’, the landmark series of economic, social and developmental initiatives that have set the national priorities for the next 50 years, furthers UAE’s deeply-rooted approach to build an attractive environment for foreign investment, with new regulations, laws and incentives to draw investors, entrepreneurs, innovators and professional talents from around the world. A total of Dhs58 billion has been allocated in the UAE’s 2021 budget to instigate the programme, which will add further to the nation’s advantages of stability, favorable regulation, strong financial reserves, large sovereign wealth funds and access to resources at competitive prices.

The UAE’s leading performance during the biggest test of all time – the COVID-19 outbreak – underlines the country’s solid economy and adaptability to global challenges. In fact, the UAE witnessed growth during the global pandemic.

FDI into the UAE totalled $19.88 billion in 2020, representing a growth of 44.2 per cent from 2019. The balance of cumulative inward FDI amounted to around $174 billion, a growth of 12.9 per cent in the same period. The country also ranked first in the Arab world – and 15th globally – in the Kearney FDI Confidence Index for foreign direct investment in 2021, advancing four places in 2020.