Executive Summary
The UAE economy is expected to preserve the upward momentum on the back of rising oil prices, growth in the non-oil sector and the success of Dubai Expo 2020, that attracted roughly 24 million visitors in the six-month period from October 2021 to March 2022.UAE Central Bank of UAE is expected to raise interest rates in line with the U.S. Fed as inflation in the U.S. reached 8.6% y/y in May 2022. The U.S. Fed is expected to aggressively hike rates, by 100 bps until the end of this year, followed by further hikes in 2023 depending on the inflation trajectory. Higher interest rates are expected to affect consumer spending during the rest of 2022 and 2023.Introduction of special visa programmes to target skilled workforce is set to lead an influx of foreign human resource, helping boost the aggregate local demand.
