The World Bank has announced that the UAE’s economy is projected to grow by 3.3% in 2024 and then increase to 4.1% in 2025. This information comes from their latest semi-annual report on the Middle East and North Africa (MENA) region.
The report highlights that the UAE will see the highest growth in real GDP per capita, estimated at 2.5% in 2024 and 3.4% in 2025, mainly due to strong performance in the non-oil sector.
However, the UAE’s current account surplus, which reflects the country’s earnings from exports versus its spending on imports, is expected to decrease from 9.2% of GDP in 2023 to 7.5% in 2024. Despite this, the UAE is predicted to maintain healthy fiscal surpluses of 4.9% of GDP in 2024 and 4.7% in 2025.
In terms of regional growth, the overall GDP for MENA is anticipated to rise to 2.2% in 2024, up from 1.8% in 2023. The Gulf Cooperation Council (GCC) countries, including the UAE, are expected to see stronger growth, increasing from 0.5% in 2023 to 1.9% in 2024 and further to 4.2% in 2025.
While oil-importing countries in the region may experience slower growth, oil-exporting countries are forecasted to see a decline in their growth rates as well.
Overall, the UAE is set to continue its path toward economic expansion, driven by its diversification efforts and robust non-oil sector performance.
