#UAE economic recovery to continue as financial system remains robust, Central Bank says

UAE economic recovery to continue as financial system remains robust, Central Bank says

Economic activity in the UAE, which recovered significantly from the coronavirus-induced slowdown in 2021, is expected to continue improving this year despite global headwinds, the UAE Central Bank said.

The regulator “projects a positive outlook for the UAE’s economy and financial system in 2022", Central Bank Governor Khaled Balama said in its latest Financial Stability Report.

“The global macro-financial outlook, however, will be negatively affected by supply chain disruptions, rising inflationary pressures and further escalating geopolitical tensions.”

The Central Bank expects the UAE economy to post its strongest annual expansion since 2011 this year after it grew by 8.2 per cent in the first three months of this year on higher oil prices and measures to mitigate the impact of the Covid-19 pandemic.

The various fiscal support measures taken by the UAE government during the pandemic were instrumental in protecting the stability of the economy and the financial system, the regulator said.