Robust Growth Forecast: UAE Real GDP Soars to 3.9% in 2024, 4.1% in 2025
The World Bank’s recent economic update brings promising news for the UAE, indicating a robust growth forecast for its real GDP over the next couple of years. This forecast upgrade reflects positive economic trends and potential opportunities for investors and businesses in the region.
World Bank’s Revised Forecast | UAE Real GDP
The World Bank has revised its forecast for the UAE’s real GDP growth, projecting a growth rate of 3.9% in 2024, up from the previous forecast of 3.7% in January. This upward revision signals a more optimistic outlook for the UAE’s economic performance in the coming year
Outlook for 2025
Looking ahead to 2025, the World Bank has further increased its forecast for the UAE’s economic growth to 4.1%, demonstrating confidence in the country’s long-term economic resilience and potential for sustained development.
Current Account Surplus and Fiscal Balance
The economic report also highlights the UAE’s current account surplus, which is expected to rise to 8.4% in 2024 and remain strong at 8.3% in 2025. Additionally, the country is projected to achieve a surplus of 5.1% in its fiscal balance by the end of this year, followed by 4.8% next year. These figures reflect a sound financial position and fiscal stability.
Growth Prospects in MENA and GCC Economies
In the broader Middle East and North Africa (MENA) region, the World Bank forecasts a growth rate of 2.7% in 2024, marking a return to pre-pandemic levels of growth. For 2025, the MENA region is expected to grow at a higher rate of 4.2%, indicating a positive trajectory for regional economies.
GCC Economies
Within the GCC, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, growth prospects are also improving. The region is forecasted to see growth rates of 2.8% in 2024 and 4.7% in 2025. This growth is primarily driven by increased oil output and robust expansion in the non-oil sector, fueled by diversification efforts and economic reforms.
GDP Per Capita Growth
MENA’s GDP per capita is projected to grow by 1.3% in 2024, indicating an improvement from the previous year. This growth is largely attributed to the positive performance of GCC economies, with a projected GDP per capita growth rate of 1.0% in 2024, a significant improvement from the decline experienced in 2023.
The revised growth forecasts for the UAE‘s real GDP, along with positive trends in current account surplus, fiscal balance, and GDP per capita, paint a promising picture for the country’s economic future. These developments underscore the UAE’s resilience and potential as a key player in the global economy.
