UAE economy steers clear of global woes
24 April 2023
Related reads on the UAE:
> Two billion riders use Dubai Metro
> Surge in tourists boosts Dubai hospitality
> Abu Dhabi strengthens its position at home
> UAE calls for reform of international financial institutions
> UAE president appoints son as Abu Dhabi crown prince
> UAE and Israel sign customs cooperation deal
> UAE moves ahead with digital currency

The UAE economy is expected to maintain a course of robust economic growth in 2023, avoiding the effects of the creeping global economic slowdown.
The Washington-based IMF projects a growth rate of 3.5 per cent for the country in 2023 – a rate of expansion well clear of the 2.8 per cent global average amid what has become a worldwide slowdown. The forecast is also ahead of the projected 3.1 per cent growth rate for the Middle East and North Africa.
Though a step down from the 7.4 per cent growth in 2022, and a modest downgrade of 0.7 per cent from the projection in October of a growth rate of 4.2 per cent this year, the UAE’s economic activity remains firmly buoyant. Its growth is forecast to rise again to 3.9 per cent in 2024.
The minor slowdown in the UAE’s economic growth is primarily due to Opec+ cutting oil production quotas, which is reversing some of the past year’s increases in oil production across the region. However, despite the cuts and the weakening of oil prices, the UAE’s oil sector revenues are expected to remain healthy, maintaining a government budget surplus of approximately 3.7 per cent of GDP this year.
Inflationary pressures have also eased since the peak of last year. Disinflation is expected to continue in the coming months, reaching 2.1 per cent this year, down from 4.8 per cent in 2022.
In light of such considerations, the Central Bank of the UAE has also put out a more optimistic projection of a sustained GDP growth rate of 3.9 per cent in 2023.
More positive still is Issam Abu Suleiman, regional director for the GCC at the World Bank, who has forecast that the UAE economy will continue to grow by 4.1 per cent despite the challenging global economic conditions.
More limited projections also exist, including a report by the Institute of Chartered Accountants in England & Wales and Oxford Economics that estimates that the growth will slow to 3.2 per cent in 2023, as weaker oil growth weighs on the more buoyant 3.9 per cent growth in the non-oil sector.

Positive sentiment
For businesses on the ground, the projection of close to 4 per cent non-oil growth remains cause for optimism.
This has been reflected in the S&P UAE Purchasing Manager’s Index (PMI), which rose yet higher from 54.3 in February to 55.9 in March (with a value over 50 indicating growth).
S&P’s report noted a pick-up in new order growth to a five-month high, as well as a rise in capacity pressures that has seen the fastest increase in employment since July 2016. The construction sector was particularly active in hiring amid a slew of new project launches led by off-plan real estate schemes.
The UAE aims to double the size of its economy by 2031 as it continues to diversify away from oil and gas
The UAE’s rebounding real estate market is more generally a key driver of the country’s sustained non-oil growth. House prices are on the rise in Abu Dhabi and property sales in Dubai have hit decade highs in recent months.
Tourism is also recovering, with Dubai regaining its spot as one of the world’s busiest aviation hubs. International visitors are forecast to increase by 20 per cent in 2023.
Ipsos’ Primary Consumer Sentiment Index ranked the UAE second in the world in terms of consumer perceptions of the strength of the economy, with 63 per cent of respondents believing it to have a strong economy. Of those polled, 81 per cent also reported being comfortable with investing in the future and 86 per cent expecting the local economy to be stronger in the next six months.
Ratings agency Moody’s has also reaffirmed the UAE’s long-term local and foreign currency issuer ratings at Aa2 with a stable outlook, citing exceptionally low credit risk with its well-balanced budget targets and limited federal spending requirements.
The introduction of corporate income tax, effective 1 June 2023, will result in further government revenue growth starting from 2025.
Moody’s also pointed to the UAE’s ongoing economic diversification. The country’s progress to date in this area remains well ahead of its GCC peers in terms of the expansion of its non-hydrocarbons revenue, private sector development and overall international attractiveness to foreign businesses and talent.
Future outlook
Looking ahead, the UAE aims to double the size of its economy by 2031 as it continues to diversify away from oil and gas. To achieve this, it needs an average of 7 per cent GDP growth a year, which it hopes to achieve by forging trade agreements and investing in global growth sectors such as green hydrogen.
The UAE’s foreign trade rose by 17 per cent year-on-year to reach AED2.2tn ($599.1bn) in 2022. In the decades ahead, the country aims to attract AED550bn in foreign direct investment by 2031 and AED1tn by 2051.
Abdullah bin Touq al-Marri, the UAE’s minister of economy, has noted that the UAE’s active business environment, which is supported by both national and foreign private sectors and an attractive labour market for international talent, has contributed to the growth of the economy.
By 2030, the government aims to increase the number of small and medium-sized enterprises (SMEs) to 1 million and raise the contribution of SMEs to the country’s non-oil GDP to 63.5 per cent.
In January this year, Dubai also launched its D33 economic agenda, which aims to grow the emirate’s economy to AED32tn by 2033 through a combination of transformative projects and a doubling of foreign trade to AED25.6tn by expanding trade links with Africa, Latin America and Southeast Asia.
This month's special report on the UAE includes:
> GOVERNMENT: Abu Dhabi strengthens its position at home
> ECONOMY: UAE economy steers clear of global woes
> BANKING: UAE lenders chart a route to growth
> UPSTREAM: Strategic Adnoc projects register notable progress
> DOWNSTREAM: Gas takes centre stage in Adnoc downstream expansion
> POWER: UAE power sector shapes up ahead of Cop28
> WATER: UAE begins massive reverse osmosis buildup
> CONSTRUCTION: Dubai construction needs major project launches
Exclusive from Meed
-
Algeria tenders 310km Tamanrasset railway16 October 2026
-
Joint venture wins $246m RCRC bridges contract16 October 2026
-
Humain tenders 100MW Riyadh AI data centre16 October 2026
-
Adnoc Onshore seeks bids for Bu Hasa field EOR project16 October 2026
-
OTTCO issues tender for Oman oil storage park expansion16 October 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Algeria tenders 310km Tamanrasset railway16 October 2026

Algeria’s state railway project developer, Agence Nationale d’Etudes et de Suivi de la Realisation des Investissements Ferroviaires (Anesrif), has invited national and international contractors to bid for the construction of a 310-kilometre (km) railway line between Hotel Station and Moulay Lahcen Station.
The planned line is a key segment of the proposed railway corridor connecting El-Menea, In-Salah and Tamanrasset across the southern wilayas of In-Salah and Tamanrasset.
The tender notice was issued on 12 October, with bids due by 10 November.
The tender is open to single contractors and consortiums. To qualify, single firms must have executed at least 200km of new railway lines or track-doubling works since 2010, with accepted project certificates covering sections of at least 100km, along with a cumulative 800 metres of railway bridges with individual spans exceeding 30 metres.
Bidders must also provide at least two rail-tamping machines, two ballast regulators, and a project director with an engineering degree and at least five years of railway construction management experience.
From a commercial and classification perspective, single bidders and consortium leaders must hold a category-nine (IX) professional qualification in public works.
Bidders must also demonstrate an average annual turnover in construction of at least DZ260bn ($1.96bn) across the 2023-2025 financial period.
For joint ventures, the cumulative turnover of all members must meet the $1.96bn threshold, with the consortium leader accounting for at least $1.3bn.
Offers must be accompanied by a bid bond exceeding 1% of the total bid value for submissions exceeding $7.4m, with proposals remaining valid for 90 days beyond the submission date.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20665591/main.jpg -
Joint venture wins $246m RCRC bridges contract16 October 2026

A joint venture of local contractor Mofarreh Group and Turkey-based Gulsan Holding has won an estimated SR923m ($246m) contract from the Royal Commission for Riyadh City (RCRC) to construct a series of grade-separated steel flyovers across the capital.
The contract, known as Package 2 (Groups 2 and 3), is part of RCRC’s urgent bridges programme under the wider project to build steel bridges at 10 junctions across Riyadh.
The works have a 12-month execution timeline to fast-track traffic decongestion across major arterial corridors.
The joint venture’s scope covers the engineering and construction of grade-separated steel bridge interchanges across seven key intersections:
- IC04: Al-Khair Road and King Salman Bin Abdulaziz Road
- IC05: Prince Turki Road and Imam Saud Road
- IC06: Al-Takhassosi Road and Saeed Al-Sulami Road
- IC07: Khurais Road and Al-Hareth Bin Abdullah Road
- IC08: Khurais Road and Ash-Sharq Road
- IC09: Khurais Road and Marmar Road
- IC10: Al-Kharj Road and Al-Hilla Road
The total length of the flyovers is 8.86 kilometres, excluding Junction IC10.
In addition to the structural steel superstructures, concrete bridge foundations, decks and approach ramps, the contract includes retaining walls, utility diversions, temporary phased traffic arrangements, associated roadworks, drainage networks, roadway lighting, intelligent transportation systems and landscaping.
The client received commercial proposals from several local and international contractors. Other bidders included:
- Masco
- Nesma & Partners
- Al-Omaier Trading & Contracting Company
- Yuksel Saudia
- Batco
- Modern Building Leaders
- Sapac
The urgent bridges initiative is part of Riyadh’s rapid transport infrastructure programme to improve traffic throughput, enhance safety and ease vehicular congestion across central and ring-road corridors ahead of major events, including Expo 2030 and the 2034 Fifa World Cup.
In July, Mofarreh Group and Turkiye’s Gulsan Holding formed a joint venture to bid for and deliver transport infrastructure projects in Riyadh for RCRC.
The joint venture said it will target road, bridge, viaduct and interchange projects.
Mofarreh will provide local market access and operational capacity, while Gulsan will contribute international experience in large-scale transport projects.
The companies said the new venture will support knowledge transfer and localisation, and promote the use of international engineering and construction standards aligned with Saudi Arabia’s Vision 2030 infrastructure and sustainability goals.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20663255/main.png -
Humain tenders 100MW Riyadh AI data centre16 October 2026

Register for MEED’s 14-day trial access
Saudi artificial intelligence infrastructure developer Humain has issued a request for proposals for an engineering, procurement and construction (EPC) contract to deliver a 100MW artificial intelligence (AI) data centre facility in Riyadh’s Al-Saad area.
The tender was issued on 17 September, with bids due by 8 November.
The contract includes core-and-shell works; civil works; mechanical, electrical and plumbing installation; testing and commissioning; and site infrastructure across a 350,200-square-metre plot.
The project also includes an optional expansion phase that could raise total site capacity to 200MW.
The initial 100MW development is split into two equal 50MW phases, structured across two single-storey IT buildings housing four 25MW data halls.
Phase one targets a ready-for-service date by October 2028, followed by phase two in January 2029.
Under the optional phase three, an additional 100MW facility would be brought online by July 2029.
The data centre will be designed to support high-density graphics processing unit clusters and AI-compute workloads, with rack densities of 240kW to 250kW.
The facility will be built to Uptime Institute Tier III topology and LEED Silver standards as a baseline, targeting LEED Gold.
The operational design targets an annualised power usage effectiveness below 1.35.
Power will be delivered through four 33kV connections supplied by Saudi Electricity Company from two separate high-voltage/medium-voltage primary substations. The scope requires 15 transformers, 15 static 2,250kW IT uninterruptible power supply (UPS) units, and 450kW mechanical UPS systems with lithium-ion battery storage for each 25MW block.
Backup emergency diesel generators will be provided on an owner-furnished, contractor-installed basis, with the EPC contractor handling their installation, connection and testing. Fuel storage will provide 24 hours of autonomous run-time, split between on-site underground bulk tanks and generator belly tanks.
Thermal management combines air and liquid cooling. High-density server racks will be equipped with direct-to-chip liquid cooling loops using coolant distribution units and technical water distribution, paired with air-cooled chillers operating in dual high- and low-temperature loops, alongside fan-wall units.
The total construction timeline is capped at 25 months from site handover or contract signing, with pre-execution early mobilisation scheduled to start in January 2027.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20661045/main.jpg -
Adnoc Onshore seeks bids for Bu Hasa field EOR project16 October 2026

Register for MEED’s 14-day trial access
The onshore oil and gas business of Abu Dhabi National Oil Company (Adnoc Onshore) has sought bids from contractors for a key project to increase the oil production capacity of the Bu Hasa oil field, primarily through enhanced oil recovery (EOR) techniques.
The main objective of the Bu Hasa-Shuaiba EOR Unit 1 (Phase 1) project is to achieve a targeted 70% increase in oil production, extend the Bu Hasa field development’s production plateau and maximise the field’s potential in an economical manner.
The project aims to confirm and validate the optimum EOR technology for the top-ranked reservoirs/units; assess incremental recovery on top of the improved oil recovery (IOR) wedge; extend the field plateau for as long as is economically feasible; and achieve an ultimate recovery factor of 70% from the Shuaiba reservoir. It will evaluate and execute the recommended EOR option through pattern phasing for any technology proven by Adnoc.
Adnoc Onshore is understood to have issued the tender for the project on 20 September, with an initial technical bid submission deadline of 8 October, according to sources. The client later extended the technical bid submission deadline to 17 October, sources told MEED.
The chosen contractor will execute the project under a hybrid contracting strategy comprising:
- A lump sum (turnkey) EPC scope covering the complete pipeline system from East Hub to the separation plant
- A call-out-based scope for execution of all WAG injector and WSW tie-in works
Unless otherwise specified, all activities defined under the contractor’s scope will be deemed included within the lump-sum contract price. This will cover engineering, procurement, construction, testing, pre-commissioning and support to commissioning for a complete and operable system.
At the Bu Hasa field development, three remote degassing stations (RDS-1/2/3) and two satellite stations, Bida Al-Qemzan and Huwaila, are currently in operation. Production from oil wells completed in Shuaiba, Thamama B, Thamama F, Bida Al-Qemzan and Huwaila is routed via individual flowlines to the three remote degassing stations and the Bida Al-Qemzan and Huwaila stations across different parts of the field.
Combined production from the wells at each of these stations is routed to the central degassing stations (CDS) via transfer lines ranging from 16 inches to 24 inches in diameter. In addition, some wells in the central part of the field are connected directly to the CDS.
Previous studies have identified carbon dioxide (CO2) flooding as a promising tertiary recovery mechanism in the Shuaiba reservoir, delivering incremental recovery on top of the IOR wedge (P5 project), extending the field plateau as long as economically feasible, and achieving an ultimate recovery factor of 70% from the Bu Hasa Shuaiba units.
Located 200 kilometres south of Abu Dhabi city, Bu Hasa is Adnoc Onshore’s westernmost producing field. It is one of Abu Dhabi's biggest onshore assets, with crude oil production capacity of 650,000 b/d. It is also one of the Adnoc Group’s oldest oil fields, having been discovered in 1962 and in production since May 1965.
As part of the ongoing Bu Hasa Integrated Field Development Project (BUIFDP), 13 new well pads and two pad hubs have been added to the field. Oil, gas and water produced at these sites will be collected at a central gathering facility, then sent through production headers and transfer lines to the CDS for processing.
Adnoc Onshore is the Adnoc Group’s largest oil-producing subsidiary, accounting for 2 million b/d of oil and about 7 billion cubic feet a day of associated gas production from four main onshore field developments in Abu Dhabi: Bab, Bu Hasa, North East Bab and South East.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20639750/main0548.jpg -
OTTCO issues tender for Oman oil storage park expansion16 October 2026

Register for MEED’s 14-day trial access
Oman Tank Terminal Company (OTTCO) has issued the main tender for a major project related to the expansion of the Ras Markaz crude oil storage complex at Duqm, on the sultanate’s Arabian Sea coast.
The project, titled Trade Bridge, involves the engineering, procurement and construction (EPC) of eight large storage tanks, each with a capacity of 650,000 barrels. This will increase the Ras Markaz terminal’s total storage capacity by 5.2 million barrels.
The project represents the next expansion phase (phase 1.4) of the Ras Markaz oil storage terminal within the Special Economic Zone at Duqm (Sezad).
State-owned OTTCO issued the prequalification notice for the project on 28 July, with contractors submitting initial responses by 4 August and final responses by 19 August, MEED previously reported.
According to sources, OTTCO issued the main tender for EPC works on Project Trade Bridge in the weeks following completion of the prequalification exercise.
The following contractors, among others, are understood to have been prequalified by OTTCO to bid for Project Trade Bridge:
- China Petroleum Pipeline Engineering Company (China)
- China Tianchen Engineering Corporation (China)
- Daqing Oilfield Construction Group Company (China)
- Enppi Muscat (local branch of Egypt-based Enppi)
- Gulf Petrochemical Services & Trading (Oman)
- Hualu Engineering & Technology Company (China)
- Rotary Engineering (Singapore)
- Sinopec Ningbo Engineering Company (China)
OTTCO commissioned the first phase of the Ras Markaz crude oil storage park, covering 10 square kilometres and with a capacity of 26.7 million barrels, in December 2022.
The storage facility has two parts. The first is a marine services area, which includes a floating station for crude imports and exports. This zone is about 7 kilometres offshore and is connected via two 42-inch pipelines and associated facilities.
In water depths of up to 42 metres, the floating station can accommodate very large crude carriers. It is linked to four main pumps that transfer crude oil to the storage area, which is located more than 120 metres above sea level. OTTCO could add pumps at a later stage to keep pace with future demand for oil storage.
The second part of the storage facility features oil pumping systems, water treatment facilities, reservoirs, power station networks and other associated systems.
Region’s largest oil storage park
OTTCO will build the Ras Markaz oil storage facility in five phases over several years across an area of about 40 square kilometres, for which it signed a land agreement with Sezad in July 2017.
It will be able to hold 200 million barrels of crude a year. Total investment in the scheme is understood to be $5.2bn.
The storage terminal in the first phase of the Ras Markaz facility is connected to the estimated $7bn Duqm refinery and other oil-derivatives production plants at Sezad via a pipeline that will supply crude feedstock to the refinery when required.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20638090/main0749.jpg