GDP growth in the UAE in 2021: several facts about economic development

The United Arab Emirates is one of the wealthiest countries in the world with a high standard of living, offering unique opportunities for business and investment. Tax incentives, the possibility of obtaining a residency visa, legislative protection, and confidentiality all attract foreign investors and high-paid specialists from the United States, Russia, Canada, and the EU. Kalinka Group experts have revealed the GDP of Dubai, UAE, and how changes affect the country's economic growth, budget, and contributors' income.

The significance of UAE's GDP in 2021

The UAE's gross domestic product in 2021 amounted to $402.9 billion, growing by 2.3% compared to the previous period. The economy has returned to its pre-pandemic level, surpassing that of 2019. The non-oil GDP in the UAE grew by 3.8%. A growth rate of 3.9% is expected in 2022.

Dynamics of changes in UAE's GDP in previous years

The dynamics of fluctuations in the UAE's GDP from 2011 to 2020 were diverse, with an average annual growth rate of 2.62%. Due to the pandemic and the resulting crisis, the GDP fell by nearly 14% to $417.22 billion in 2019. In 2020, the economy continued to decline, with the GDP shrinking to $358.87 billion. The GDP per capita amounted to $37,498. The highest GDP was in 2018 at $422.22 billion, while the lowest was in 1975 at $14.72 billion.

Impact on investor income

National Bonds, an investment company specializing in bonds and part of the Dubai Investment Corporation (ICD), presented statistics showing that investments in the UAE increased by 36% in 2021, reaching $3.2 billion. The number of digital deposits grew by 62.4%. Sales rose by 64%. The income of depositors amounted to 3.3%, which is one of the highest parameters. Investors who have held funds in national bonds since 2006 received a cumulative profit of 64.11%.

The table below shows the UAE's position in global rankings.

Since 2021, the country has been on the rise. According to forecasts by the Central Bank of the UAE, the national economy is expected to grow by 4.2% in 2022. The foundation is the trade of oil and gas, but finance, tourism, re-export, and other industries have a significant share in the GDP structure. The development is further accelerated by seaports, free economic zones, and the application of innovative technologies.

If you are planning to relocate your business or move to Dubai or Abu Dhabi, Kalinka Group experts will help you find real estate, prepare documents, provide tax and legal consultations, and assist in obtaining a residency visa. We look forward to welcoming you to our offices in Moscow, Dubai, and Istanbul.