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UAE expects non-oil GDP to grow 4.2% this year, minister says

Nation participates in the G20 finance ministers' meeting in Bengaluru, India

The UAE expects its non-oil GDP to grow by 4.2 per cent this year, Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said in Bengaluru on Saturday.

The minister made his remarks as head of the UAE delegation at the meeting of the first G20 finance ministers and central bank governors at the south Indian city.

In his remarks, Al Hussaini reiterated the importance of a globally coordinated multilateral action to promote climate finance, as well as strengthening joint international action to set goals and draw strategies that would achieve the best means of financing and investments needed to combat climate change and mitigate its repercussions.

On infrastructure priorities, the minister highlighted how that the UAE has focused on building cities that bridged digital gaps by leveraging 5G and AI to provide safety and enhance social cohesion. This enables the UAE to reduce emissions in line with its global climate change commitments. “We have leveraged private sector participation in the development of smart cities through collaborative models that incentivise private sector involvement in areas such as clean energy, green buildings and ICT infrastructure development, which we believe to be all critical enablers for the future cities of tomorrow,” Al Hussaini said.

On global economic challenges, Al Hussaini noted: “The UAE’s economy continues to withstand global effects, where we expect to achieve 4.2 per cent of non-oil economic growth by the end of this year. On a global scale, there remains an immediate need for policy coordination to minimise vulnerabilities and promote food and energy security.”

On the international tax agenda, the minister lauded the progress made on OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS), welcomed the work produced under the Two-Pillar Solution. He also noted the significance of considering the different levels of tax systems maturities across countries.

With regard to the Joint Finance and Health Taskforce multi-year plan, Al Hussaini welcomed the proposed priorities including the direction to develop the Economic Vulnerabilities and Risks Framework, which will be key to informing resource mobilisation in line with the objectives of the Pandemic Fund.

The meeting discussed the progress under the G20 priorities set by the Indian presidency for the year 2023, and means of bolstering international cooperation to achieve the G20 priorities and goals.

During the meeting, the members discussed several areas of importance such as global economic challenges, global financial stability, infrastructure priorities for future-ready cities, sustainable finance, digital financial inclusion, global health priorities and international taxation. Members also exchanged views on ensuring seamless flow of cross-border payments, strengthening the financial sector’s cyber resilience, food and energy security, risks associated with climate change for emerging markets and developing economies, and preparedness to combat health challenges.

On the sidelines of the meeting, Al Hussaini participated in a number of panel discussions and events. He met the President of the World Bank Group, David Malpass, Managing Director of the IMF, Kristalina Georgieva and several other senior global leaders.