The Central Bank of the United Arab Emirates said it expects the UAE economy to grow 4.2% in 2022, accelerating from last year's 2.1% growth.

The central bank's projection, in its latest quarterly report on the economy, is rosier than that of the International Monetary Fund, projects the UAE economy will grow 3% this year.

Non-oil real gross domestic product (GDP) is expected to increase by 3.9%, due to a continued increase in public spending, positive outlook for credit growth, higher employment and better business sentiment with a world fair EXPO event in Dubai, the bank said on its website.

Oil GDP is forecast to grow 5% this year, reflecting the expected increase in demand with majority of the world economies being vaccinated, it said.

(Reporting by Saeed Azhar; Editing by William Mallard)