Scott Livermore, Chief Economist and Managing Director of Oxford Economics Middle East, has projected a 4.8% expansion for the UAE economy by 2025, driven by the growth of the non-oil sectors.
Livermore noted that the non-oil economy is expected to grow by 4.6% in 2024, with travel and tourism playing a significant role.
According to Livermore, Dubai's visitor numbers and traffic through Dubai International Airport (DXB) are set to hit record levels, with visitor growth expected to exceed 20% this year, followed by further double-digit increases in 2024.
While acknowledging challenges such as higher interest rates, Livermore credited the UAE government’s support and growth strategies, including "We the UAE 2031" and Dubai’s D33 plan, for driving investment and diversification.
"The UAE is enhancing its appeal to foreign investors and talent through initiatives like 100% foreign ownership of onshore companies and reduced business setup costs, fueling population growth and the real estate market,"
he added.
On the global front, Livermore predicted that the US Federal Reserve would shift its focus to the labor market and cut interest rates by 50 basis points by the end of 2024 and by 150 basis points by the end of 2025. He also forecasted global economic growth of 2.7% for 2023 and 2024, dispelling fears of a potential US recession.
News Source: Emirates News Agency
