UAE To Remain Rapid Growing Economy in GCC in 2024 and 2025

The UAE will keep up with its situation as the quickest developing economy in the Gulf Cooperation Council (GCC) region in 2024 and 2025 as it will actually want to raise oil yield sooner than other oil-delivering nations in the Opec+ bunch, financial experts said.

Mena region economist James Swanston predicted that the UAE's GDP would rise by 5.5% in 2025, surpassing that of its Gulf peers and the rest of the wider regional nations.

“The UAE will be able to raise oil output sooner than other Opec+ members. Its balance sheet is very strong and should not be challenged by lower oil prices, allowing fiscal policy to stay loose. As a result, the UAE will keep its position as the fastest-growing economy in the Gulf both this year and next,” Swanston said in a note.

In order to support the market in the face of rising US production and sluggish demand, Opec+ agreed earlier this month to extend the majority of its oil output cuts into the following year. The members of the group that produced oil were making 5.86 million barrels of oil per day.

“Following this month’s OPEC+ decision, the UAE is set to start unwinding its voluntary oil output cuts from October and, from January, can take advantage of its newly raised base quota. The upshot is that oil output will be 6 per cent stronger in 2025 than we previously anticipated. Meanwhile, we expect Brent crude prices to average $83 per barrel this year and $75 per barrel in 2025, which is well above fiscal and current account break-even prices. With large twin surpluses, the UAE government can continue with a loose fiscal stance,” he added.