April 1, 2023

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We are aiming to double the GDP by 2031 at an annual growth rate of 7%

The UAE aims to double its economy to 3 trillion dirhams

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Despite the World Bank and Central Bank expectations for the UAE economy to grow by 3.5 to 4% last year, it has achieved growth of 7.6%, UAE Economy Minister Abdullah bin Duq Al-Marri said. To government policies and directives of leadership.

Regarding the expected performance for the current year, Al-Marri told Al-Arabiya in an interview that despite the slowdown expected this year in light of the performance of oil and gas and the expected drop in prices, we are expecting an opening. China and Asia, which will have a direct impact on growth.

The minister noted a partial decline in global inflation in the last quarter of 2022, which could signal the start of a deflationary phase, in light of the strength and stability 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 by 2031, and to achieve this goal, it is necessary to achieve a growth rate of 7% in GDP annually.”

Regarding the most important sectors targeted by foreign investments, the Minister of Economy of the United Arab Emirates said that foreign investments are targeting 3 main sectors: manufacturing, information technology and the health sector.

Al-Mari described the application of a corporate tax rate of 9%, while its application will begin in early 2024, and its law and regulations are still in the process of being published.

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Abdullah bin Duq Al-Mari said about the country’s inflation, in light of the dirham’s link with the dollar and the rise of the dollar against other currencies in the past, the dirham also rose against those currencies, so the inflation is in light of 95% of imported goods, but purchases made in dirhams, compared to other currencies, Inflation has come down by a very large percentage.

He continued, “Thus, the country has not been largely affected by rising inflation, which is expected to moderate in the coming period due to China’s opening up and the realignment of goods and supply chains.”