The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
ABU DHABI/WAM
The UAE’s economy is expected to grow by 3.9 percent in the current year, 2024, rising to 6.2 percent in 2025, according to the Arab Monetary Fund (AMF).
In its Arab Economic Outlook report issued today, the AMF stated that the expected growth of the UAE’s economy this year is driven by continued improvements in tourism activity, real estate, and international trade, increased capital spending, and ongoing efforts to support the economy, including developments in high-tech industries.
The report added that the UAE’s economy shows strong fundamentals supported by a dynamic non-oil sector and robust public and monetary policies aimed at maintaining economic development, financial stability, and the soundness of the financial sector.
The country’s growth relies largely on its strategic initiatives to strengthen its position as a global hub for trade and finance, continuous infrastructure development, a strong regulatory framework that attracts foreign investments, and a focus on innovation, growth, and technology-based sectors.
The report explained that the UAE witnessed significant economic growth in 2022, amounting to 7.5 percent, driven by a successful response to the COVID-19 pandemic, supportive financial measures, and the enhancement of a business-friendly environment implemented in previous years.
Additionally, there was strong growth in the fuel sector and a significant recovery in the tourism sector. The country also achieved a positive growth rate of about 3.6 percent last year.
The report projected that the growth rate of Arab economies would improve in 2024, reaching about 2.8 percent compared to 0.3 percent in 2023. The pace of economic growth is expected to further improve to 4.5 percent in 2025, with declining interest rates and tightly controlled inflation. This is in addition to the stability of oil prices at relatively high levels and the stability of commodity prices.
The report indicated that the main oil-exporting Arab countries are expected to benefit from improved energy price levels, which is expected to positively affect their economic growth in 2024 and 2025. The major oil-exporting countries are projected to witness a growth rate of 3.7 percent in 2024, rising to 5.1 percent in 2025.
The Arab Monetary Fund report estimated that the Kingdom of Saudi Arabia’s economy would grow by 4.4 percent in 2024 and 5.7 percent in 2025, while the Qatari economy is expected to grow by about 1.8 percent in 2024 and 3.1 percent in 2025.
The Kuwaiti economy is projected to grow by 2.7 percent by the end of this year, rising to 3 percent next year.
The report anticipated that the Sultanate of Oman’s economy would achieve growth rates of 2.3 percent and 2.7 percent in 2024 and 2025, respectively, while Bahrain’s economy is estimated to grow by 3.5 percent and 3.2 percent in 2024 and 2025, respectively.