UAE Economic Expansion Predicted at 4% in 2025, Fueled by Acceleration in Non-Oil Sector
Copped Up Take:
The International Monetary Fund (IMF) predicts the United Arab Emirates (UAE) economy croppin' up by 4% in 2025, trouncing most of the region despite global headwinds sneakin' up, according to updates revealed during a briefin' in Dubai.
Jihad Azour, Director of the IMF's Middle East and Central Asia Department, spit this out: the UAE's non-oil sector, mad infrastructure investments, and growth in real estate and finance keep the economic momentum poppin'. He further reckoned that growth might speed up to 5% in 2026.
Abu Dhabi's expected to lead the charge with a growth rate of 4.2% in 2025 and a sharp ascent to 5.8% in 2026. Dubai's economy, too, gon' expand, forecasted to grow by 3.3% in 2025 and 3.5% the following year.
Azour dropped the news during a media sesh hosted by the Dubai International Financial Centre, collabo with the IMF. He pointed out the UAE shinin' like a diamond even as other countries struggle with downward revisions to initial forecasts.
Across the Middle East and North Africa realm, the IMF's estimatin' economic growth of 2.6% in 2025 and 3.4% in 2026. These figures revised down from October 2024 projections of 4% and 4.2%, respectively. In 2024, the regional growth is assessed at a measly 1.8%.
Azour underscored that the Gulf Cooperation Council states vary significantly in their economic structures and reserves, meaning their reactions to market shifts hit different spots at different times.
Sources: Emirates News Agency
The Scoop:
- The non-oil sector in the UAE, including finance, real estate, and tourism, maintains a robust performance and growth.
- Infrastructure investments continue to drive growth, improve the country's competitiveness, and encourage foreign investment.
- Sectors like finance, real estate, and potentially tourism and transportation, are poised to fuel economic growth. These sectors exhibit substantial expansion, with financial and insurance activities escalatin' by 7% over the past years[1][3].
- The UAE's focus on economic diversification and competitiveness supports its growth trajectory. The country aims to transition towards a more innovative, knowledge-based, and sustainable economic model[1].
- Recent agreements, such as those with the United States, have fortified the UAE's economic outlook. These agreements contain significant investments in AI, energy, and manufacturing, further strengthenin' the country's economic perspective[5].
All these factors collectively contribute to the UAE's promising economic outlook, backing up its forecasts for 2025 and 2026.
- The promising economic growth in the UAE, as predicted by the International Monetary Fund (IMF), is largely driven by the robust performance and growth of its non-oil sectors such as finance, real estate, and tourism.
- According to Jihad Azour, collaboration and investment from the United Arab Emirates (UAE) in infrastructure and business sectors have helped improve the country's competitiveness, attract foreign investments, and sustain its economic growth.
- The focus on economic diversification, investing in AI, energy, and manufacturing, and fostering regional growth through agreements are factors that contribute to the UAE's positive financial outlook, as revealed during a media session hosted by the Dubai International Financial Centre and the IMF.
