Central Bank of UAE's latest figures reveal that the UAE's economic growth has flourished in 2021, with growth of 3.8% throughout the year, and is expected to grow by another 4.2% by 2023.
The Central Bank of UAE issued its annual report for 2021, and it provides an insight into the measures and initiatives taken by the authority to support the national economy and to ensure the financial sector’s resilience aimed at building the UAE’s financial system future. The gross domestic product (GDP) of the country jumped to 3.8% in 2021 and is expected to reach 5.4% in 2022, while non-oil GDP growth rose to 5.3% in 2021.
Overall GDP growth will be supported by a robust 8 percent jump in the UAE’s oil economy in 2022, which is expected to grow another 5 percent next year amid higher crude prices. The UAE’s current account surplus in the balance of payments rose to Dh176.2bn in 2021 from Dh77.5bn in 2020, as both oil and non-oil exports increased, the CBUAE said.
According to the Central Bank, the banking system in the UAE maintained its strength last year with healthy levels of capitalization and liquidity. Equity, liquid assets, and other indicators reflect the improvement of liquidity conditions in the market.
These results support CBUAE's outlook, which indicates that the UAE's economic recovery is gaining steady momentum, as a result of the early and strong response to the various challenges through the pandemic and their repercussions, the supportive macroeconomic policies, appropriate decisions, and the leadership of the Central Bank Board of Directors, chaired by H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister of the UAE, Minister of Presidential Affairs.
"The resilience characterizing the UAE’s banking and insurance sectors played a prominent role in defining a benchmark for dealing effectively with future crises, without compromising the principles of sound risk management," said H.H. Sheikh Mansour Bin Zayed Al Nahyan. "I commend the CBUAE’s continuous efforts to strengthen the Anti Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework in the country. Tainted money is not acceptable and has no place in the UAE’s financial system," added Sheikh Mansour Bin Zayed Al Nahyan.