* Tourism and energy are at the top of the most attractive sectors
* Gold, commodities and stocks are the most attractive investment tools
Inflation and high interest rates are the main challenges
* Moderate performance of the private sector and equity markets
High oil prices are a positive factor for the national economy
Dubai: Anwar Dawood
The results of the annual “Gulf” survey for the current year confirmed that the UAE’s economy will achieve strong growth during the year 2023, continuing its strong growth during the year 2022, supported by high oil prices that enhance financial surpluses and support spending.
70% of the respondents expect the UAE economy to achieve growth ranging from strong to very strong during the current year, as 50% see a strong performance, while 20% believe that a very strong performance will be a feature of the performance of the national economy in the year 2023. As for 30% Those who are less optimistic see that the performance of the UAE economy will be moderate in 2023.
And 90% of the participants in the questionnaire, which included the opinions of 12 international, regional and local institutions and houses of expertise, and economists, believe that the performance of the UAE economy during the year 2022 ranged between very strong and strong, with 50% for very strong, 40% for strong, while 10% saw Only that it scored a moderate performance.
In terms of the factors affecting the performance of the UAE economy during 2023, 100% of the respondents believed that there is no expected impact of COVID-19 on the performance of the UAE economy during the year 2023, and thus the pandemic has become behind the UAE economy.
And the rise in interest rates came at the forefront of the negative factors affecting the performance of the UAE economy in the year 2023, as 80% agreed that it had a negative impact, while only 20% believed that it had no effect.
In agreement with international and international institutions, and the International Monetary Fund, 100% of the respondents confirmed that the effects of high oil prices will be positive for the UAE economy in the current year, as 70% see it as positive, and 30% as very positive, in order to strengthen the financial budgets and surpluses of the government.
In terms of inflation, 60% of the respondents believe that inflation will have some negative effects on the UAE economy, but 20% believe that it will have more negative effects, while 20% believe that it has no effect.
As for the continuation of the Russian-Ukrainian crisis and its impact on the UAE economy, 40% of the respondents expected that there would be a positive impact due to the changes brought regarding by this crisis, while 20% believed that there would be no impact, while 30% believed that there would be a negative impact to an extent. What, compared to 10% who believe that there will be a very negative impact.
70% of the respondents believe that the upcoming initial public offerings in the UAE during the year 2023 will witness moderate demand, while 30% of them believe that it will record strong demand.
Also, 80% of the respondents indicated that the stock markets in the UAE are expected to witness a moderate performance during the year 2023, while 20% of them believe that the markets will record a strong performance.
In terms of the performance of the private sector, 60% of the respondents believe that it has recorded a moderate performance, while 40% of them believe that it has recorded a strong performance.
Also, 70% of the respondents expect that the activities of domestic credit in the UAE will be moderate, while 30% believe that the activities will be strong.
real estate sector performance
40% of the respondents believe that the real estate sector in Dubai will record a strong performance during the year 2023, while 30% of them believe that it will record a moderate performance, and 30% believe that it will perform less than expected.
And 90% of the respondents believed that the performance of the real estate sector in Dubai was between very strong and strong in 2022, between 60% and 30%, respectively.
Also, 30% of the respondents believe that the performance of the real estate sector in Abu Dhabi will record a strong performance in the year 2023, compared to 50% who believe that it will witness a moderate performance, compared to only 20% who believe that it will record a weak performance.
As for 2022, 70% saw that Abu Dhabi real estate recorded a performance that ranged between strong and very strong, at 60% and 10%, respectively, while 30% saw that it recorded a moderate performance.
60% of the respondents expected the companies to record moderate profits during the year 2023, while 40% expected the companies to record strong profits, excluding that the profits will be weak or moderate.
region’s economy
Regarding the factors influencing the performance of the regional economy in 2023, 50% believe that “Covid-19” will have no effect, while the other half expect it to have a somewhat negative impact.
As for the rise in interest rates, 100% affirmed the negativity of this factor on the economy of the region, as 60% believe that the impact will be somewhat negative, while 40% believe that it will be very negative.
In terms of high oil prices, 80% believe that their impact will be positive on the economy of the region, following 60% of them saw that their impact would be positive and 20% very positive.
And 10% believe that there is no effect due to high oil prices, and 10% believe that it has a very negative impact.
International Economy
And 100% of the respondents agreed that “Covid-19” and any waves from China will have a somewhat negative impact on the global economy in 2023.
100% of the respondents affirmed the negative effects of the increase in interest rates, as 80% believe that the increase in interest rates will create very negative effects in the global economy, while 20% believe that it will create negative effects to some extent.
And 40% expect that high oil prices will be a very negative factor on the world economy during this year, and 40% agree that it is negative, but to some extent, while only 20% believe that oil prices have no effect on the world economy.
Also, 100% of the respondents agreed that inflation will be the most negative in the world economy in the year 2023, with 60% seeing it as very negative, and 40% seeing it as somewhat negative.
100% also agreed on the negative impact of the Russian-Ukrainian crisis, as 50% of them believe that the impact will be very negative, and the other half somewhat negative.
sectors
In terms of the most attractive economic sectors for investment in the UAE during the year 2023, the respondents see that tourism comes in the forefront, then investment in energy in the second place, then education and health care in the third place, and consumer goods came in the fourth place, while technology shared Financial services and manufacturing ranked fifth, then real estate in sixth place.
Tools
The expectations of the respondents varied regarding the most attractive investment tools for investors during the current year, so gold and commodities came in the first place, then stocks in the second place, fixed income tools in the third place, then assets in the fourth place, then private property in the fifth place, and currencies in the center Sixth, digital currencies and their products came in seventh place.
