The Central Bank of the UAE (CBUAE) has maintained its GDP growth projection at 4% for 2024, with expectations to accelerate to 4.5% in 2025 and 5.5% in 2026, as outlined in its latest Quarterly Economic Review. Growth is being driven by key sectors including tourism, transportation, financial services, construction, and real estate, along with strategic efforts to attract foreign investments and diversify the economy.
The non-oil sector remains a major contributor, with non-oil GDP growth reaching 4.8% year-on-year (YoY) in Q2 2024. Non-oil trade exceeded AED 1.3 trillion in the first half of 2024, supported by economic partnership agreements (CEPAs). Meanwhile, oil production averaged 2.9 million barrels per day, with production expected to grow 1.3% in 2024 and 2.9% in 2025.
Fiscal performance has been strong, with the government recording a fiscal surplus of AED 65.7 billion (6.7% of GDP) in H1 2024, a 38.8% increase from 2023, driven by a rise in tax revenues. Capital expenditure surged 51.7% YoY, reflecting increased investment in infrastructure projects.
Private sector confidence remains high, as shown by the UAE’s Purchasing Managers’ Index (PMI) at 54.1 in October 2024, while Dubai’s PMI was 53.2, signaling continued expansion. Employment under the Wages Protection System (WPS) increased by 4% YoY, with average salaries rising 7.2% YoY, indicating strong domestic consumption and economic stability.
The UAE’s comprehensive economic strategies continue to support steady growth and reinforce its position as a leading global economic hub.
News Source: Emirates News Agency
