The UAE Minister of Economy, Abdullah bin Touq Al-Marri, said that despite the expectations of the World Bank and the Central Bank of the growth of the UAE economy between 3.5 to 4% last year, it achieved a growth of 7.6%, thanks to government policies and directives of the leadership.
Regarding the expected performance during the current year, Al-Marri said, in an interview with Al-Arabiya, that despite the expected slowdown this year in light of the performance of oil and gas and the expected drop in prices, we expect China and Asia to open up, which will have a direct impact on growth.
The minister referred to the partial decline in global inflation in the last quarter of 2022, which may give an indication of the beginning of the stage of declining inflation, in light of the strength and solidity of the labor market and US employment data.
He continued, “We aim to double the size of the economy from 1.5 trillion dirhams to 3 trillion dirhams in 2031, and to achieve this goal, it is necessary to achieve a growth rate in GDP of 7% annually.”
Regarding the most prominent sectors targeted by foreign investments, the UAE Minister of Economy said that foreign investments targeted 3 main sectors: manufacturing, information technology, and the health sector.
Al-Marri described the application of the corporate tax rate of 9% as the lowest in the world, while its application will begin at the beginning of 2024, and its legislation and regulations are still in the process of being issued.
Regarding inflation in the country, Abdullah bin Touq Al-Marri said that in light of the dirham’s linkage to the dollar, and the rise of the dollar against other currencies during the last period, the dirham also rose against those currencies, and therefore inflation is imported in light of 95% of imported products, but with purchases in dirhams. Compared to other currencies, inflation has decreased by a very large percentage.
He continued, “Therefore, the country is not greatly affected by the rise in inflation, and it is expected to decrease in the coming period with the opening of China and the re-transfer of goods and supply chains.”
