Damian Hitchen, CEO overseeing Saxo Bank’s operations in the Middle East and North Africa (MENA) region, holds an optimistic view regarding the UAE economy’s growth in 2024. He predicts a growth rate of over 5.5 percent, primarily driven by investments in renewable energy and technology.
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In an interview with the Emirates News Agency (WAM), Hitchen emphasized the UAE’s favorable business environment, strategic location, and forward-thinking policies that attract global investors and companies. He expressed confidence in the prospects for projects and investments in the UAE and the wider Middle East region in the coming years.
Hitchen also highlighted the UAE’s prominent role in global financial markets, with its economic plans closely aligned with global trends. He acknowledged the country’s advantageous position and excellent infrastructure, which create diverse opportunities for commercial activities.
Furthermore, Damian explained that the UAE’s commitment to innovation and global partnerships has bolstered its economic standing on the world stage. He cited the country’s successful efforts to diversify its economy away from oil by focusing on sectors such as tourism, technology, renewable energy, and financial services. These initiatives have helped reduce dependence on oil revenues.
The CEO emphasized the UAE’s support for innovation and entrepreneurship, attracting foreign investments through programs like the Golden Visa and free zones. These measures have played a significant role in diversifying the economy and positioning the UAE as a key player in the global economy.
Tech investments and financial services driving growth in UAE
Hitchen discussed the UAE’s investments in emerging technologies like artificial intelligence and blockchain, which have created opportunities for startups and technology institutions. He also noted the rapid growth of financial technology services in Dubai and Abu Dhabi, solidifying the UAE’s status as a major financial hub.
In addition to its economic diversification efforts, Damian underlined the UAE’s appeal as a top global tourist destination, continuously attracting a significant number of visitors. Infrastructure and real estate projects have also garnered substantial investor interest, with all sectors benefiting from the country’s business-friendly environment, strategic location, and economic diversification endeavors, ultimately contributing to its economic growth.
Continued recovery for Gulf Arab economies
Hitchen expects the economies of the Gulf Arab states to continue their recovery, with the Arabian Gulf region projected to experience growth rates of 2.5 percent in 2023 and 3.2 percent in 2024. This recovery can be attributed to diversification efforts, increased government spending, and infrastructure projects that stimulate economic growth across these nations.
Global economic outlook
Regarding the global economic outlook, Hitchen discussed various factors influencing the global economy, including challenges like supply chain disruptions and inflationary pressures. Governments, central banks, and international organizations are actively addressing these challenges to support overall economic growth.
He acknowledged the divergent growth rates observed among countries, regions, and sectors, with some experiencing decline while others are on an upward trajectory. Hitchen stressed the importance of seizing growth opportunities and adapting to the ever-changing global conditions.
The CEO also commented on the recent decision by the U.S. Federal Reserve to maintain interest rates, taking into consideration economic data, concerns about rising inflation, and employment trends. This decision reflects the Fed’s commitment to ensuring economic stability and addressing long-term inflation, aiming for an annual inflation rate of 2 percent.
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