On the heels of the six-country expansion of the BRICS alliance, the United Arab Emirates (UAE) has seen its economic growth flourish in non-oil sectors. Among the leading oil producers globally, The Organization of the Petroleum Exporting Countries (OPEC) reported 3.8% growth in the first quarter of 2023 in differentiating sectors.
Moreover, in a September report, OPEC noted its expectation of the UAE’s continued growth. specifically in avenues that have already experienced significant increases. Subsequently, those areas will see a positive impact from the previously stated BRICS expansion.
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BRICS Strengthens Amidst UAE’s Economic Growth
The current economic situation globally has certainly remained rather concerning for a lot of regions. China has experienced a swift economic downturn, while the West continues to combat inflation rates. Specifically enacting a year-long interest rate hike in its efforts.
Yet, as the BRICS bloc has recently expanded, the UAE has seen its economic growth flourish in non-oil sectors. Indeed, OPEC reported that the nation’s economy grew 3.8% in the first quarter of 2023 alone. Contextually, the development is a huge positive for the new members of the collective.
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The report noted that the primary sectors of growth were transportation and storage, at 10.9%. Moreover, the construction, accommodation, and food services sectors also increased. Alongside growing tourism and travel, the country is experiencing a clear economic upswing.
The report predicted that the number of internal visitors to the UAE would grow by 40% in 2023. That staggering figure will be important for economic growth to continue and sustain itself. However, the report also noted that the UAE central bank has followed the United States’ lead in financial policy. Specifically, following the US Federal Reserve’s interest rate action in recent months
All of these factors could continue to benefit the BRICS bloc as a whole. With China on a downswing and being the most powerful economy in the bloc, the collective should benefit from the UAE’s performance. Subsequently, they set up a positive start for 2024, when they officially joined.