Another strong quarter for the UAE retail economy showcases an extraordinary sector-wide resilience and reinforces the country’s steady march toward a return to sustainable growth.
The UAE economy, which made a strong rebound from the pandemic-driven slowdown in 2021, has picked up pace this year. It is set to expand by 5.4% in 2022, according to the UAE Central Bank.
Despite inflation concerns, consumer spending in the UAE jumped 20% annually in the first nine months of this year, with the Arab world’s second-biggest economy set to expand at its fastest pace in over a decade. Retail spending grew by 15% annually in the nine months, while non-retail expenditures rose 29% over the same period. Spending also increased by 12%, driven by solid growth in the fashion, watches, and jewelry segments.
The country, which has instituted company and market reforms and introduced several long-term visa options for professionals and investors, removed nearly all Covid-19 restrictions on Monday. The move is expected to boost its retail economy further, drive tourism, and speed up the country’s property sector recovery.
Expectations are for the economy to expand by 7% in 2022, setting up the country’s fastest annual expansion since 2011, when output grew by 6.9%.Business activity in the UAE’s economy continued to improve in October in many areas, as the data are shown in the travel and tourism sector, UAE property market, and volume of transactions.