UAE Economy to Grow 3.7% in 2024, Projected at 4.5% in 2025

The economy of the UAE is projected to increase from 3.7 percent in 2024 to 4.5 percent in 2025. As per the most recent ICAEW Economic Insight report created by Oxford Economics, growth in the non-energy sector is anticipated to ease slightly from 4.5 percent to 4.3 percent because of capacity limitations in essential sectors.

The nation’s achievement in drawing investment is clear with its $16 billion in greenfield foreign direct investments, upholding its worldwide leadership in FDI compared to GDP. Tourism persists in fueling growth, as Dubai's visitor arrivals rose by 6.3 percent year-on-year during the initial nine months of 2024.

The economies of the GCC are set to more than double their growth rate from 1.9 per cent in 2024 to 4 per cent in 2025. This increase occurs despite the continuation of OPEC+ oil production cuts, placing the GCC in a strong position to greatly exceed global GDP growth, which is expected to rise slightly from 2.7 per cent in 2024 to 2.8 per cent in 2025.

The energy sector in the GCC is poised for a significant recovery in 2025, anticipating a growth of 4.2 percent as oil production cuts are progressively reduced. At the same time, the non-energy sectors will continue their strong performance, exhibiting steady growth close to 4 percent in both 2024 and 2025. Regional PMIs continue to be strongly positive, as Saudi Arabia’s PMI hits a six-month peak of 56.9, reflecting high business confidence and robust domestic activity.