2024-01-15 12:48:23
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January 15, 2024
16:48 pm
S&P expects the UAE economy to grow by 5% in 2024
Standard & Poor’s Global Credit Ratings Agency expects the UAE’s GDP to grow by more than 5% in 2024, which exceeds the 2.8% rate the agency expects for the global economy.
Tatiana Leskova, Assistant Director for Corporate Affairs in the Gulf Cooperation Council Countries at S&P Global, said, according to WAM: “While the global economy has remained growing at weak rates, we estimate that the UAE’s GDP will grow by more than 3% in 2023.” “Including a growth of approximately 6% for the non-oil sector,” and “We expect the growth of the UAE economy to exceed the growth rates of the global economy in 2024.” As for Dubai, it expected “continued strong momentum in the hospitality, wholesale and retail trade and financial services sectors, which will drive growth in the coming period 2024-2025.”
About the real estate market in the UAE; Leskova said: “The number of mortgage transactions in Dubai has continued to grow, with more than 80% of real estate transactions being completed in cash, at a time when the European real estate market has been characterized by weak purchasing power since 2022 due to high interest rates and relatively high inflation, while the Chinese market is still “It also represents a challenge for leveraged developers, with tight margins and falling prices putting pressure on profitability, as well as at a time when the picture is becoming a little brighter in the United States, where demand rose at the beginning of 2023 following a slowdown.”
Regarding the observed trends in real estate investments in the UAE; Tatiana Leskova noted the significant increase in the number of Russian buyers to become one of the largest groups of investors in Dubai. She said: “Indian, European and GCC buyers remain the largest investors according to the historical trend. Leskova noted that real estate developers have indicated growth in off-plan property sales over the past three years, reaching a record level in 2023. She reported that the real estate sector has benefited from a rebound in demand from international buyers, as well as continued interest from resident and regional buyers.
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