The Microsoft cloud will boost economic growth in addition to creating jobs; over the next four years, the UAE economy is expected to add 152,530 new jobs.

Both directly within Microsoft’s operations and indirectly through its network of partners and cloud-using clients, these jobs will be generated.

The snapshot also showed that over 41,800 new skilled IT jobs will be added by the Microsoft ecosystem to the UAE economy over the same period, supporting the Gulf country’s transition from a technology consumer to a true innovation hub where technology is produced and exported globally.

A study sponsored by Microsoft and titled “Microsoft Cloud Dividend Snapshot” for the UAE was released at Gitex Global 2024. It emphasises the vital role that Microsoft’s cloud services and partner ecosystem are playing in advancing the digital economy, promoting innovation, and creating jobs in the UAE.

Microsoft’s dedication to fostering local business growth and advancing the United Arab Emirates’ aspirations to become a global technology hub was also underscored by the study.

To support local economies with services and products, Microsoft and its partner ecosystem will invest about USD 51 billion in the UAE’s data centre regions over the next four years. Businesses will grow as a result of this investment, especially those trying to use AI and the cloud to maintain their competitiveness in the ever-digital business world.

Naim Yazbeck, General Manager of Microsoft UAE, said, “As organisations across the UAE and the region seek to leverage the latest advancements in Artificial Intelligence, the cloud remains the foundation upon which these innovations are built. At Microsoft, we are committed to providing highly secure, trusted, enterprise-grade cloud services that are critical for organisations accelerating their AI transformation journey. Our investment in local data centres, our partner ecosystem, and the broader digital economy reflects our ongoing dedication to empowering government institutions and businesses to innovate, drive economic growth, and create sustainable jobs for the future.”

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The non-oil GDP increased by 6.7% during that time, the Federal Competitiveness and Statistics Centre said.

Among the industries with the fastest growth were finance and insurance, real estate, transportation and storage, and construction.

The Gulf State has also increased its investments in fields like cutting-edge technology and renewable energy.

As one of the top oil exporters in the world, the UAE has expedited plans to diversify its economy away from hydrocarbons and attract international investment; as a result, the GDP’s non-oil component currently accounts for more than 70% of the country’s overall growth.

Reuters projections project that real GDP growth will be 3.6% in 2023, with non-oil GDP growth coming in at 6.2% amidst a drop in oil activity due to reduced production and prices in 2023, which put pressure on all local producers of gas and oil.

In a recent statement, the International Monetary Fund (IMF) noted that the UAE’s economic growth was broad-based and supported by strong domestic activity in industries like financial services, tourism, and construction.

The Fund increased the 3.5% GDP growth estimate in its most recent Regional Economic Outlook report from April to 4% in its preliminary forecast for 2024.

IMF also found sustained domestic activity and comparatively high oil prices emerging as key factors in deciding the direction of UAE’s GDP growth. As per the global body, the Gulf nation is witnessing rapid growth in domestic industries like tourism, building, and finance services. And last but not the least, UAE’s inflation rate is predicted to be at 2% in 2024.

“The building, manufacturing, and financial services sectors of the UAE’s economy are growing at the fastest rates. The substantial growth in house prices and rent hikes is due in part to foreign demand for real estate, the UAE’s status as a safe haven, the improvement of bilateral and multilateral relations, and the ability to raise sufficient funds domestically,” Arab News reported further.

According to an April Reuters survey of analysts, the UAE will have the fastest GDP growth among Gulf countries in 2024, growing at a rate of 4%.

Analysts at Emirates NBD said in a research report that “the UAE’s economy has been impressively resilient despite both a dismal external backdrop as well as much higher interest rates in 2023.”

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S&P Global’s PMI report states that a rise in new orders was the primary factor behind Dubai’s private sector’s notable expansion. Companies hired workers at their quickest rate in the previous eight years as a result of this rise.

Dubai’s PMI was 56.6 in January 2024 as opposed to 57.7 in December and 56.8 in November 2023.

Any PMI rating above 50, according to S&P Global, denotes expansion in the non-oil sector, while values below 50 denote contraction.

“The Dubai PMI surged to 58.5 in February, which is its joint-strongest rating since 2015 – matching May 2019 – and implies that the Dubai non-oil economy is growing rapidly so far this year,” stated David Owen, senior economist at S&P Global Market Intelligence.

“The reading indicates that, according to global PMI data, the Dubai non-oil industry is among the fastest growing internationally,” he continued.

According to the survey, 36% of participants reported an increase in output from the previous polling period, which represents the fastest upturn in 1.5 years.

Businesses reported better output in February 2024 due to increased project activity, robust market conditions, and an increase in demand.

According to the survey, average output charges dropped at their quickest rate in eight months, with the wholesale and retail industries witnessing the biggest declines.

“Production and new order volumes are proving particularly solid, as businesses report gaining new customers, increased demand, and a post-pandemic economy that is still recovering,” stated Owen.

Similar to this, the pace of new business growth picked up steam halfway through the first quarter of 2024, having dipped to a five-month low in the PMI. All of the major industries the poll tracks had more pronounced gains during this time.

Compared to January 2024, non-oil enterprises in Dubai were more optimistic about the future, with about 19% of poll respondents anticipating growth in output and the remaining respondents staying neutral.

“While employment and inventory growth strengthened, inflationary pressures remained low, encouraging more aggressive sales promotions. According to all of this, the non-oil sector’s growth needs to continue through 2024,” Owen continued.

The latest landmark comes close to a month after the publication of a report which stated that the United Arab Emirates (UAE) reported a record-high non-oil trade volume of USD 952.93 billion in 2023, thereby marking a 12.6% increase from 2023.

In February 2024, Minister of Foreign Trade Thani Al Zeyoudi emphasised the significance of UAE’s non-oil sector, which outpaced overall GDP growth in the first half of 2023, registering a robust 6% increase.

Zeyoudi underscored the pivotal role of Comprehensive Economic Partnership Agreements (CEPAs) in driving trade expansion, citing substantial growth in trade volumes with key partners such as India and Turkey.

Despite external challenges, including disruptions to Red Sea shipping routes due to Houthi attacks, Minister Zeyoudi expressed confidence in UAE’s economic resilience, while reaffirming the country’s preparedness to navigate global uncertainties, citing adaptability and robustness in facing challenges.

UAE’s services sectors, including travel and tourism, information technology, financial services, and professional services, have been contributing significantly to the expansion of the Gulf nation’s non-oil trade since 2023.

Also, UAE’s major non-oil exports, such as gold, aluminium, jewellery, copper wire, and ethylene polymers, have showcased remarkable growth, further diversifying the nation’s export portfolio.

Minister Zeyoudi highlighted substantial growth in non-oil commodity exports, which surged by 16.7% to reach 441 billion dirhams in 2023, constituting a notable portion of UAE’s foreign trade.

Furthermore, re-exports experienced a significant uptick, rising by almost 7% to reach 690 billion dirhams, reflecting the country’s pivotal role as a regional trade hub.

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“This year (2023), the whole real GDP is predicted to increase by 3.5%,” said a statement released on October 16 after the conclusion of the most recent staff visit.

Ali Al Eyd, Advisor and Mission Chief at the International Monetary Fund, has now predicted that average inflation in the Emirati would remain under control at around 3% in 2023, down from 4.8% in 2022.

The outlook is favourable in the short term, but the fund issued a warning due to increased global risks and unpredictability.

Slower global growth, higher interest rates for a longer period, tighter financial conditions, or geopolitical developments would all weigh on GDP and put a strain on fiscal and external balances, according to the IMF.

The UAE’s 2024 OPEC+ production quota rise is predicted to cause hydrocarbon GDP growth to pick up the following year after the OPEC+ output cuts slow it down in 2023.

The UAE’s haven status, along with social and business-friendly changes, continue to draw foreign labour and capital inflows, supporting growth and driving up real estate prices overall, but especially in high-end segments.

“Due to the high price of oil, fiscal and external surpluses remain strong. In 2023, the fiscal balance is anticipated to be 5% of GDP, driven by oil revenue and robust economic growth,” the IMF prediction stated further.

Over the medium term, increasing non-oil revenue will be supported by the gradual implementation of a corporate income tax, which started in June 2023.

With the benefit of the Dubai Emirate reducing its public debt by 29 billion dirhams through its Public Debt Sustainability Strategy, public debt is expected to continue to shrink and fall solidly below 30% of GDP in 2023.

In 2023 and 2024, the current account surplus is anticipated to be significantly higher than the medium-term average.

Overall, banks are sufficiently capitalized, but risks to financial stability must be continuously and carefully monitored.

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The villa sold was built from scratch and was designed keeping in mind the key details of the buyers.

The buyer of the villa is a European who has recently shifted to Dubai along with his family. In the past four months, European buyers were among the most active, particularly at the upper end of the market.

Speaking with Gulf News, Kunal Singh Gupta, Associate Director of Luxhabitat Sotheby’s International Realty, said that the villa was presented to the buyers in an immaculate condition which was well-appreciated by them.

He further added that the most desired luxury homes right now are those that are built-in modern-Mediterranean style, came with a larger plot and built-up area, and views of the beach, golf course, or a park.

In 2022, it has been recorded that over Dh4.6 billion sales were made on the Palm which also included one sale of Dh280 million. It has been regarded as the costliest deal made on the residential space in Dubai.

According to Trade Arabia, a survey, using the data from the Dubai Land Department, conducted by Luxhabitat Sotheby’s stated that the top ten most expensive apartments which were sold in Q1 of 2022 were from the areas of Palm Jumeriah, Emirates Hills, Jumeira Bay, and Downtown Dubai.

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The bank, which has incurred financial losses did not specify how long the position of the interim chief position will be there, or when they expect to hire a permanent replacement. The bank also mentioned that they will update once the time is right.

The bank reported $169.3 million in total losses for the first nine months of 2021, representing 30 percent of its capital. The Shahraj-based lender had blamed its exposure to NMC and the negative impact of the Covid-19 pandemic for the losses.

In other news, Qatar National Bank has appointed Ali Ahmed Al-Kuwari as its new chairman. The bank announced this news in a statement to the Qatar Stock Exchange. During the third quarter of 2021, the bank reported a profit of $961 million.

In 2021, the bank’s entire profit rose to $3.6 billion, which is up from $12 billion last year. The bank’s profit for the quarter ended on December 31, according to Reuters calculation. The results were slightly lower than what analysts estimated, which was around $12.7 billion.

Another rating agency Fitch, in October, indicated that it could cut the ratings of all banks in Qatar, saying it was concerned over the sector’s increasing reliance on external funding and recent rapid growth in assets. Additionally, foreign funding was $193 billion at the end of August, representing, 48 percent of the Qataru bank sector liabilities compared to $121 billion and 38 percent at the end of 2018.

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The Project for 50 is a set of developmental and economic projects which are designed to accelerate the UAE’s development and transform the region into a comprehensive hub in all sectors. At the same time, it also aims to establish the UAE as an ideal destination for talents and investors.

His Highness Sheikh Mohammed bin Rashid Al Maktoum told the media, “The Etihad Rail is the largest project to consolidate the strength of the union for the next 50 years. It will connect 11 key cities and regions across the UAE. “The UAE’s infrastructure is among the best in the world, and the Etihad Rail will further enhance UAE excellence in the logistical field. The project comes in line with the environmental policy of the UAE and it will reduce carbon emissions by 70 to 80 percent.”

His Highness Sheikh Mohamed bin Zayed Al Nahyan told the media, “The National Railways Programme reflects the true meaning of integration into our national economic system, as we see the largest partnership between government entities at the federal and local levels. It comes to support a national vision to connect the country’s key centres of industry and production, open new trade routes and facilitate population movement, creating the most developed work and life environment in the region.”

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The high figure was primarily because of the large deals carried out by the state-run Abu Dhabi National Oil Company (ADNOC) and its sale of a stake in its natural gas pipeline, which contributed to the growth in the country. Last year, UAE’s biggest energy producer signed a deal worth more than $10 billion with a group of investors where they sold 49 percent of the stakes in its gas pipelines.

Economy minister Abdullah al-Marri said the UAE would strive to move forward with its initiative to increase its efficiency of the business environment, strengthen investor confidence, and improve competitiveness at local and federal levels. The United Nations Conference on Trade and Development (UNCTAD) World Investment Report also mentioned that UAE stood fifth in terms of FDI in Asia, after China, Hong Kong, Singapore, and India.

The report added, “FDI to the United Arab Emirates expanded by 11 percent to $20 billion. Natural resources transactions drove investments in the country, primarily ADNOC’s $10 billion sales of a 49 percent stake in its natural-gas pipelines to a group of six investors including Global Infrastructure Partners (United States), Brookfield Asset Management (Canada), and Singapore’s sovereign wealth fund.”

In 2020, the US was the biggest recipient of FDI 2020 where it received $156 billion from $261 billion in 2019.

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In this regard, Thaddeus Best, a Moody’s analyst told the media, ‘’However, limited institutional transparency and the absence of public data on the composition of offshore assets and some aspects of the emirates’ public finances remain the UAE’s main credit constraints. Our baseline forecast assumes that nominal GDP will recover to pre-pandemic levels over the next three years. The rapid rollout of the coronavirus vaccine will support a more rapid recovery in domestic tourism and boost the hospitality and retail sectors.’’

According to UN Environment Executive Director, Erik Solheim, the biggest challenge for the Middle East and especially UAE is the transformation from an oil-based economy to one a more diverse one. However, the UN environment head lauded the UAE in this regard, and claimed that the UAE is a success story.

Data released officially by the UAE revealed that its economy contracted by 6.1 percent in 2020 due to the coronavirus pandemic and the slump in global oil demand. The Federal Competitiveness and Statistics Centre further said in its report that the non-oil economy shrank by 6.2 percent during the same period.

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In a press conference, Ambassador Ilan Sztulman Starosta, Head of the Israeli mission in Dubai said that the international business potential backed by Israeli innovation, UAE’s visionary leadership and strategic partnership of both nations with India could be $110 billion by 2030.

Similarly, Ambassador of the UAE to India and Founding Patron of IFIICC, Dr Ahmed Abdul Rahman AlBanna, told the media, “UAE and India’s bilateral trade is projected to grow from $60 billion in 2020 to $100 billion by 2030. UAE is a gateway to the world and this trilateral with India and Israel could benefit the world.”

Last month, it was reported that the UAE will invest in various strategic sectors of Israel. The UAE has decided to establish a fund of $10 billion after a telephonic conversation between Benjamin Netanyahu, Israeli Prime Minister and Sheik Mohamed bin Zayed, Abu Dhabi’s Crown Prince.

The investment fund from the UAE is expected to support Israel in sectors including energy, manufacturing, water, space, healthcare and agritech. This will support the developmental initiatives of the country and also promote regional economic cooperation between the two countries. The investments for the fund are derived from institutions belonging to the government and private sectors.

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