The UAE is projected to remain the Gulf’s fastest-growing economy in 2024/25, bolstered by a robust non-oil sector, despite a slower start in early 2024. The IMF recently revised its GDP growth forecast for the UAE to approximately 4% in 2024, up from an earlier 3.5%.

Recent first-quarter 2024 GDP data from Abu Dhabi and Dubai revealed a slight slowdown. Abu Dhabi’s growth decelerated to 3.3% year-on-year from 4.1% in Q4 2023, with both oil and non-oil sectors experiencing slower growth. Conversely, Dubai’s GDP growth edged down to 3.2%.

Capital Economics anticipates that growth in the Gulf economies will pick up in the coming quarters, especially as oil output increases from October. However, challenges may arise from 2025 due to falling oil prices and the difficulty of sustaining loose fiscal policies. The continued implementation of reforms and tight policies will be crucial for maintaining economic stability and recovery in the region.

Source: Khaleej Times