OPEC highlights positive expectation for UAE economy

The OPEC Monthly Oil Market Report (MOMR) has maintained its positive momentum with regard to the UAE’s economic recovery.

The MOMR, issued on Thursday, stated that the economic outlook remained positive, thanks to improving economic conditions supported by the easing of COVID-19-related constraints and the improvement in fossil fuel prices.

The report indicated that the recent S&P Global UAE PMI stood at 54.8 in March 2022, unchanged from a month earlier, yet the reading pointed the 16th straight month of non-oil private-sector expansion.

It also added that this month the Central Bank of the UAE (CBUAE) increased the base rate of the overnight deposit facility by 50bps to 2.25%, tracking the increase in the federal funds rate.

Moreover, the bank indicated that the rate on borrowing short-term liquidity from the CBUAE through all standing credit facilities would stand at 50 bps above the base rate.