The report highlighted robust performance in the fuel and tourism sectors
The UAE economy is forecast to grow by 3.9 percent in 2024, with an expected rise to 6.2 percent in 2025, according to the Arab Monetary Fund (AMF).
Drivers of Growth
The AMF’s latest Arab Economic Outlook report highlights that the anticipated growth in the UAE’s economy for this year is driven by ongoing improvements in tourism, real estate, international trade, increased capital spending, and continued support through high-tech industry developments.
Strength of UAE’s Economy
The report emphasizes that the UAE’s economic fundamentals are strong, supported by a vibrant non-oil sector and robust public and monetary policies designed to sustain economic development, financial stability, and sector health.
Boosting Global Economic Influence through Strategic Initiatives
The UAE’s growth strategy includes strengthening its role as a global trade and finance hub, continuous infrastructure development, a favorable regulatory framework for foreign investment, and a focus on innovation and technology.
UAE’s Economic Performance in 2022
In 2022, the UAE saw remarkable growth of 7.5 percent, attributed to effective pandemic response, supportive financial measures, and improvements to the business environment. The report also noted strong performance in the fuel sector and a significant recovery in tourism, with a previous year’s growth rate of about 3.6 percent.
Projected Growth of Arab Economies
The report forecasts that Arab economies will see growth of approximately 2.8 percent in 2024, up from 0.3 percent in 2023, with further acceleration to 4.5 percent in 2025. This improvement is due to lower interest rates, controlled inflation, and stable oil and commodity prices.
Outlook for Major Oil-Exporting Arab Countries
Major oil-exporting Arab nations are expected to benefit from improved energy prices, with projected growth rates of 3.7 percent in 2024 and 5.1 percent in 2025. The report predicts Saudi Arabia’s economy will grow by 4.4 percent in 2024 and 5.7 percent in 2025.
Economic Projections for Selected Arab Countries
The Qatari economy is expected to grow by 1.8 percent in 2024 and 3.1 percent in 2025. Kuwait’s economy is projected to increase by 2.7 percent in 2024 and 3 percent in 2025. Oman’s economy is forecasted to grow by 2.3 percent and 2.7 percent in 2024 and 2025, respectively, while Bahrain’s economy is estimated to rise by 3.5 percent in 2024 and 3.2 percent in 2025.
Explore Strategic Opportunities for Company Formation in the UAE
With the UAE’s economy set to grow 3.9% in 2024 and 6.2% in 2025, now is the perfect time to start or expand your business. Contact us to take advantage of the UAE’s robust market and strategic opportunities.
