Today's Edition
YOUSEF AL BUSTANJI (Abu Dhabi) - In its economic report for the second quarter of 2023, the Central Bank of the UAE (CBUAE) announced that the economic activity of the country’s non-oil private sector increased to its highest levels since June 2019.
The report, released yesterday, indicated that in June of this year, new businesses in the UAE increased at their fastest rate in four years. In July, the number of private sector employees increased 16% compared to the same period of 2022, and wages increased 18% in the same period. The report also highlighted the significant growth in the value of residential transactions in Abu Dhabi, which grew 103% in Q2 2023, valuing Dh6.1 billion.
The Dubai real estate market also saw growth, with the number of executed real estate transactions increasing 40% in the first half of 2023. The number of new investors in the sector also increased by 15% during the same period.
The CBUAE maintained its forecasts for the country’s GDP growth, which remain unchanged at 3.3% for 2023 and 4.3% for 2024. Non-oil GDP is expected to grow by 4.5% this year and 4.6% in 2024. The data also showed that the UAE’s consolidated fiscal account balance recorded a surplus of Dh23.2 billion during Q1 2023, while government revenues amounted to Dh116 billion and expenditures reached Dh92.5 billion. Data from the first half of the year indicates that Dubai remains a prominent centre for global tourism, welcoming around 8.5 million visitors in H1 2023.
The hotel occupancy rate reached 78%, and the sector is expected to continue its strong performance during the remainder of the year, driven by upcoming events such as the Abu Dhabi Grand Prix for Formula 1 and the United Nations Climate Change Conference (COP28), in addition to the gradual return of major markets that reopened after the pandemic, such as China.
Also indicating strong tourism development, Abu Dhabi International Airport recorded significant growth in passenger movement in H1 2023. The airport witnessed a 67% increase in passenger traffic, exceeding 10 million passengers compared to 6 million passengers in the same period of last year. There was also a considerable 36% annual increase in the number of flights, at approximately 68,000 flights.
This can be attributed to the expansion of Abu Dhabi International Airport’s network, which now offers flights to 114 destinations through 27 airlines. Dubai International Airport received 41.6 million visitors in the first half of the year, a 49% increase compared to the same period in 2022, driven by a 43% year-on-year increase in the Q2 2023. About 201,000 flights were recorded in the first half of the year, a 30% annual increase, and a 13% increase compared to the first half of 2019. Air cargo volumes also increased by 16.1% year-on-year in the second quarter of 2023, reaching 456,000 tonnes.
This year, Dubai International Airport was deemed the busiest international airport in the world in terms of international passenger movement by the International Airports Council for the ninth consecutive year.
Abu Dhabi International Airport recorded a 67% growth in passenger movement in H1 2023 Q2 2023 saw a 15% rise in the number of new investors in the real estate sector The value of Abu Dhabi residential transactions increased 103% in Q2 2023
