The Arab Monetary Fund (AMF) predicts a 6.2 percent economic expansion for the UAE in 2025, following a 3.9 percent increase this year. The AMF's Arab Economic Outlook report cites tourism, real estate, and international trade improvements, along with higher capital spending and economic support measures, as key drivers for 2024 growth. The AMF's optimistic 2025 forecast surpasses the International Monetary Fund's 4.2 percent prediction but aligns with the Central Bank of the UAE's projections.
The UAE, the Arab World's second-largest economy, aims to double its GDP to over $800 billion by the end of the decade, focusing on becoming a global business and finance hub. The country is pursuing bilateral trade deals and partnerships to achieve its economic objectives. Statista forecasts a $157.4 billion GDP increase between 2024 and 2029, reaching $685.15 billion in 2029.
The AMF highlights the UAE's strong economic fundamentals, supported by a vibrant non-oil sector and robust policies. Predicted growth is attributed to strategic initiatives to enhance its global trade and finance hub status, ongoing infrastructure development, a strong regulatory framework, and a focus on innovation and technology sectors. The AMF notes significant 2022 growth of 7.5 percent, driven by effective pandemic response and a business-friendly environment.
The report also projects improved Arab economies' growth rates, reaching 2.8 percent in 2024 and 4.5 percent in 2025, with controlled inflation and stable oil prices. Major oil-exporting countries are expected to see growth rates of 3.7 percent in 2024 and 5.1 percent in 2025. Saudi Arabia and Qatar are projected to experience growth of 4.4 percent and 1.8 percent in 2024, rising to 5.7 percent and 3.1 percent in 2025, respectively.
Post-pandemic, the UAE's economic recovery is driven by successful policies attracting talent and foreign investment, particularly in real estate, tourism, and retail. High global oil prices have also boosted economic prospects, positioning the UAE as a promising investment destination.
