UAE’s Economy Set to Grow by 4.1% in 2025: World Bank

UAE: The World Bank has predicted that the UAE’s economy will grow by 3.3% in 2024 and reach 4.1% in 2025. These insights were shared in the World Bank’s latest MENA Economic Update titled “Growth in the Middle East and North Africa.”

Strong Growth in Non-Oil Sector

The report highlights that the UAE’s growth is driven by a strong non-oil sector, with real GDP per capita growth expected to be 2.5% in 2024 and 3.4% in 2025. This economic strength positions the UAE as a leader in the region.

Decline in Current Account Surplus

Despite ongoing efforts to diversify its economy, the UAE’s current account surplus is expected to fall from 9.2% of GDP in 2023 to 7.5% in 2024. However, the country will maintain a fiscal surplus, with projections of 4.9% in 2024 and 4.7% in 2025.

MENA and GCC Growth Outlook

Looking at the broader Middle East and North Africa (MENA) region, the World Bank forecasts a growth rate of 3.8% in 2025, with the Gulf Cooperation Council (GCC) countries expected to see even stronger growth. GCC economies are predicted to grow by 4.2% in 2025, up from 1.9% in 2024.

For oil-exporting countries outside the GCC, growth will slow to 2.7% in 2024, while oil-importing countries in the region are forecast to see a decline from 3.2% growth in 2023 to 2.1% in 2024.

Modest Growth in the Region

The overall MENA region’s GDP is projected to see a slight increase, from 1.8% in 2023 to 2.2% in 2024. This is largely due to the performance of the GCC economies, which will experience a sharp rise in growth from 0.5% in 2023 to 1.9% in 2024 and further to 4.2% in 2025.

In summary, while the UAE and GCC countries show promising growth, other parts of the MENA region may face slower economic progress in the coming years.