The Central Bank of the UAE (CBUAE) projects real GDP to register 2.5 per cent growth in 2021.
Non-oil GDP is expected to grow by 3.6 per cent, with oil GDP remaining flat based on the OPEC+ production schedule and announcements.
In its latest report, the top bank said real non-oil GDP growth in 2021 is expected to be driven by increasing fiscal spending, pick up in credit and employment, relative stabilization of the real estate market, boosted by recovery in confidence and the Dubai EXPO.
CBUAE also expects a full recovery in 2022, with overall real GDP increasing by 3.5 per cent, and the non-oil real GDP rising by 3.9 per cent.
"This will be the result of the continued fiscal spending growth, healthy banks’ credit growth, strong improvement in employment and recovered business sentiment, with part of Dubai EXPO taking place in 2022 as well," it explained.