عربي English Türkçe اردو فارسى
Logo
Latest News
Business

UAE Central Bank Expects GDP to Grow 2.5% in 2021, 3.5% in 2022

UAE Central Bank (WAM)
UAE Central Bank (WAM)
TT
TT

UAE Central Bank Expects GDP to Grow 2.5% in 2021, 3.5% in 2022

UAE Central Bank (WAM)
UAE Central Bank (WAM)

UAE's GDP growth is forecast to pick up to 2.5 per cent and 3.5 per cent, respectively in 2021 and 2022, according to a recent report by the Central Bank of UAE (CBUAE).

The country’s non-oil GDP will grow by 3.6 percent during this year and will reach 3.9 percent in the upcoming year.

The Central Bank had confirmed that the targeted comprehensive economic support plan has achieved remarkable positive results within a year since its launch, paving the way for the strong recovery from the repercussions of the Covid-19 pandemic.

The bank also launched two new payment system regulations aiming to promote robust financial infrastructure, which is essential for financial stability and consumer protection.

The two systems, the Large-Value Payment Systems (LVPS) Regulation and the Retail Payment Systems (RPS) Regulation, also facilitate the UAE’s international competitiveness.

Governor Abdulhamid al-Ahmadi remarked that payment systems are the “plumbing of the financial system” a critical part of any country’s financial infrastructure.

Ahmadi asserted that the issuance of the two regulations is an important milestone to reach the objective of providing robust, efficient, and accessible financial infrastructure in the UAE, serving the financial institutions, corporations, and people, and supporting the country’s competitive economy.

“The large value and retail payments systems regulations will help facilitate smooth, secure, and efficient conduct of transactions. The retail payments regulation will also provide a level playing field to advance innovation and competition, and financial inclusion.”

The LVPS regulation sets standards for financial infrastructure systems that support wholesale payment activities in the UAE.

As for the RPS regulation, it focuses on systems for retail payments, which provide funds transfer, clearing, and settlement services related to retail activities. The regulation covers all retail payment systems irrespective of currency or means of exchange in which the transactions are conducted.

The Bank explained that system operators and settlement institutions of existing large-value payment systems and retail payment systems operating in the UAE must comply with the requirements of these two regulations by the end of February 2022.

Most Viewed

 
 
Business

Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
TT
TT

Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.