The World Bank's latest semi-annual MENA Economic Update projects the UAE's GDP to grow by 3.3% in 2024, with an anticipated rise to 4.1% in 2025.
The report, titled "Growth in the Middle East and North Africa," highlights the UAE's leadership in real GDP per capita growth rates, expected to reach 2.5% in 2024 and 3.4% in 2025, driven primarily by robust advancements in the non-oil sector.
Despite ongoing diversification efforts, the UAE's current account surplus is set to decline to 7.5% of GDP in 2024, down from 9.2% in 2023. The country is expected to maintain fiscal surpluses of 4.9% in 2024 and 4.7% in 2025.
For the broader MENA region, GDP growth is forecasted to increase modestly to 2.2% in 2024, up from 1.8% in 2023, with the Gulf Cooperation Council (GCC) countries significantly contributing to this growth. The GCC's growth is projected to jump from 0.5% in 2023 to 1.9% in 2024, reaching 4.2% in 2025.
However, growth for oil-importing nations in the region is expected to slow from 3.2% in 2023 to 2.1% in 2024, with non-GCC oil exporters experiencing a similar decline from 3.2% to 2.7%. Overall, the MENA region's growth trajectory reflects a nuanced economic landscape as diversification efforts continue amid fluctuating global oil markets.
News Source: Emirates News Agency
