S & P Global Ratings projects UAE's real GDP to grow

UAE, February, 2024 : S&P Global Ratings projects UAE's real GDP to grow by 5.3% in 2024, up from 3.4% in 2023, driven by increased oil production and non-oil sector support. UAE banks saw record profits in 2023 due to lower provisioning requirements and higher interest margins. The outlook for UAE banks is stable, with strong liquidity and profitability expected to continue. 

The agency anticipates the US Federal Reserve to cut interest rates by 100 basis points, which the Central Bank of the UAE is likely to follow due to the dirham's peg to the US dollar. UAE banks maintain high liquidity and strong net foreign assets, with retail lending expected to remain robust.

Source : https://www.zawya.com/en/uae