UAE Economic Growth Expected To Surpass 5.5% In 2024, Says Saxo Bank's MENA CEO

Damian Hitchen, CEO of Saxo Bank in the MENA region, has expressed a positive outlook for the UAE's economy, forecasting a growth rate exceeding 5.5 percent in 2024. This anticipated growth is largely attributed to investments in technology and renewable energy sectors. Speaking to the Emirates News Agency (WAM), Hitchen emphasized the UAE's strategic advantages, including its prime location, business-conducive environment, and progressive policies that continue to draw global investors and companies.

The CEO underscored the UAE's pivotal role in the international financial markets, linking its economic strategies with worldwide trends. He pointed out that the nation's strategic position and superior infrastructure open doors for various commercial opportunities. Hitchen praised the UAE's dedication to innovation and international collaborations, which bolster its position on the global economic stage and support its economic framework.

Furthermore, Hitchen elaborated on the UAE's efforts to diversify its economy beyond oil by investing in key sectors such as tourism, technology, renewable energy, and financial services. Initiatives like the Golden Visa and free zones have been instrumental in attracting talent and businesses, facilitating economic diversification. The country's adaptable approach to economic diversification has established it as a significant player in the global economy.

He also highlighted the UAE's investment in technological innovations like artificial intelligence and blockchain, which offer opportunities for startups and tech institutions. The UAE's stature as a major financial hub is growing, with fintech services expanding in Dubai and Abu Dhabi. Additionally, as a leading global tourist destination, the UAE continues to draw record numbers of visitors. Infrastructure and real estate projects are attracting investors across all sectors, benefiting from the nation's strategic initiatives towards economic growth.

Hitchen is optimistic about the economic recovery of Gulf Arab states, projecting a growth rate of 2.5 percent in 2023 and 3.2 percent in 2024 for the Arabian Gulf region. This growth is expected due to diversification efforts, increased government expenditure, and infrastructure projects enhancing economic development across these nations.

Addressing the global economic landscape, Hitchen discussed challenges such as supply chain disruptions and inflationary pressures. He noted that governments, central banks, and international organizations are actively working to mitigate these issues to foster economic growth. He acknowledged varying growth rates across different countries, regions, and sectors, highlighting the importance of capitalizing on growth opportunities while adapting to global conditions.

In conclusion, Hitchen referred to the recent decision by the US Federal Reserve to maintain interest rates steady. This decision takes into account various factors including economic data, concerns about rising inflation, and employment trends. It reflects the Fed's commitment to ensuring long-term economic stability and achieving an annual inflation target of 2 percent.

With inputs from WAM