OPEC Highlights UAE's Strong Non-Oil Sector Growth and Strategic International Partnerships

The Organisation of the Petroleum Exporting Countries (OPEC) has highlighted the robust growth of the UAE's economy, particularly in its non-oil sectors such as real estate, tourism, and manufacturing.

In its Monthly Oil Market Report (MOMR) for August 2024, OPEC noted that housing, water, electricity, gas, and other fuels, which make up over 40 per cent of the Consumer Price Index (CPI), saw a slight year-on-year increase to 6.7 per cent in June, up from 6.6 per cent in May.

Food and beverage inflation remained stable, with a minor rise to 2.4 per cent year-on-year in June, compared to 2.3 per cent in May. On the international front, the UAE Central Bank has recently signed currency swap agreements with Ethiopia, the Seychelles, and Indonesia. These agreements aim to facilitate cross-border transactions and enhance payment system cooperation.

In addition, the UAE has finalized a Comprehensive Economic Partnership Agreement (CEPA) with Mauritius, which is expected to eliminate tariffs and boost trade, further strengthening the UAE's business and diplomatic ties in Africa. This agreement is a key part of the UAE's ongoing efforts to diversify its economy, particularly in the non-oil sector.

OPEC's report underscores the UAE's strong economic policies and strategic international partnerships, which position the country well for sustained economic growth and diversification. The continued expansion of the non-oil sectors and the forging of global trade agreements are seen as critical to the UAE's long-term economic success.

News Source: Emirates News Agency