UAE 2022 Outlook:

UAE 2022 Outlook: The V-shaped recovery to continue

The UAE economy is expected to grow 2.1% in 2021 vs. -6.1% in 2020. The economic recovery is largely led by spectacular inoculation drive (91% of population received at least one dose), DH 400 million worth of economic stimulus and vision of leaders of the UAE has driven recovery.

This growth will further expand to 4.2%, higher than earlier forecast of 3.8% by CBUAE. Expo 2020 has already started having a lasting impact on business environment, job creations and overall attractiveness of UAE as a center of global economy and trade. The entrepreneurs have already started reaping very positive benefits of Dubai Expo 2020.

Mega events such FIFA world cup, normalcy of relationship with countries such as Israel and Qatar, along with rebounding of travel industry will set key grounds for growth in 2022 and serve as prime growth engine for the UAE economy.

In the region overall, including travel and tourism which was worse hit hard in past, economic activity is reaching at pre-covid level. Dubai’ flagship air is preparing ready with the heavy investment and recruitments for growth. Oil prices at also at their highest sustained level since 2014. As per IMF forecasts, GCC will return to fiscal balances in 2023 for the first time since 2014.

The V-shape recovery of the UAE economy is a sign of resilience and reflects long term vision of leadership across the emirates. As a silver lining to the crisis, Businesses as well as government services across the country now are more agile, digitized and prepared for any geo-political or economic crisis.

It is up to local and relevant international businessmen to identify the huge opportunity available for them to reap the reward. The leadership of the country is providing huge platforms for all.