The United Arab Emirates (UAE) is expected to maintain its position as the fastest-growing economy in the Gulf Cooperation Council (GCC) region through 2024 and 2025. This strong performance is attributed to the country’s flourishing non-oil sectors and increasing levels of foreign direct investment.
A report by the Institute of International Finance (IIF) predicts that the UAE’s economy will grow by 4.0% in 2024 and accelerate further to 5.1% in 2025. These growth rates are the highest among GCC nations, reaffirming the UAE’s status as a regional economic leader. In 2023, the country achieved a GDP growth rate of 3.6%, also the fastest in the Gulf.
While the non-oil sector played a significant role in the UAE’s economic expansion, with a remarkable 6.2% growth in 2023, its growth rate is expected to moderate slightly in the coming years. Despite this slowdown, the UAE’s non-oil sector will remain the fastest-growing in the region, continuing to drive the country’s overall economic progress.
The UAE’s favorable economic prospects have been further highlighted by Garbis Iradian, the chief economist for MENA and Central Asia at IIF. He noted that the nation’s economic outlook is strong, with risks effectively managed. This resilience is anticipated to support sustainable growth and development in the coming years.
Several factors contribute to the UAE’s success, including its diversification efforts, a supportive business environment, and strategic investments in infrastructure and innovation. The country’s ability to attract foreign investments has also played a key role in boosting economic activity across various sectors, reducing reliance on oil revenues.
As the UAE looks ahead to 2024 and 2025, its continued focus on non-oil growth and economic diversification is expected to solidify its leadership position in the GCC region. With robust policies and forward-thinking strategies, the UAE is well-positioned to navigate global economic challenges and capitalize on emerging opportunities, ensuring steady progress in the years to come.
