The UAE’s economy is projected to grow by 3.9% this year, with an anticipated rise to 6.2% by 2025, according to the Arab Monetary Fund’s latest report.
The Arab Economic Outlook, released on July 25, highlights several key factors driving this growth, including advancements in tourism, real estate, and international trade, as well as increased capital spending and ongoing support for the economy.
The report emphasizes the UAE’s strong economic fundamentals, supported by a dynamic non-oil sector and effective public and monetary policies. These include strategic initiatives to solidify the UAE’s position as a global trade and finance hub, continuous infrastructure development, and a robust regulatory framework that attracts foreign investment.
In 2022, the UAE experienced significant growth of 7.5%, thanks to a successful pandemic response and supportive financial measures. Despite a slight slowdown last year, the economy still showed a positive growth rate of about 3.6%.
Looking ahead, the report also forecasts improved economic performance across Arab countries. The growth rate for Arab economies is expected to reach 2.8% in 2024, up from 0.3% in 2023, with further growth to 4.5% by 2025. Major oil-exporting nations are projected to benefit from higher energy prices, leading to a growth rate of 3.7% in 2024 and 5.1% in 2025.
Saudi Arabia’s economy is anticipated to grow by 4.4% in 2024 and 5.7% in 2025, while Qatar’s economy is expected to see growth of 1.8% in 2024 and 3.1% in 2025. Kuwait, Oman, and Bahrain are also expected to experience varying degrees of economic growth over the coming years.
