The UAE’s economy is projected to grow steadily, with real GDP expected to hold at 4% in 2024 before rising to 4.5% in 2025 and 5.5% in 2026.
According to the Central Bank’s December 2024 quarterly economic review, this growth will be driven by robust performances across key sectors, including tourism, transportation, financial services, insurance, construction, real estate, and communications.
In the second quarter of 2024, non-oil GDP recorded a year-on-year growth of 4.8%, improving from 4% in the first quarter. This boost was primarily supported by advancements in manufacturing, trade, transportation and storage, and real estate activities.
Non-oil GDP growth is forecasted to remain solid at 4.9% in 2024 and further increase to 5% in 2025, bolstered by government strategies aimed at attracting foreign investments and promoting economic diversification.
Throughout Q3 2024, steady progress continued across 16 non-oil sectors, with wholesale and retail trade, manufacturing, and construction playing significant roles.
The UAE’s Comprehensive Economic Partnership Agreements (Cepa) with multiple nations have significantly enhanced trade relations, resulting in non-oil trade surpassing AED1.3 trillion ($353.93 billion) in the first half of the year, equating to 134% of the nation’s GDP.
Oil production averaged 2.9 million barrels per day during the first ten months of 2024 and is anticipated to grow by 1.3% this year, with a sharper increase of 2.9% expected in 2025.
The UAE recorded a fiscal surplus of AED65.7 billion, marking a 38.8% rise compared to AED47.4 billion in the first half of 2023.
General government revenue climbed by 6.9% year on year to reach AED263.9 billion in the first half, driven by a 22.4% surge in tax revenues.
Additionally, employment under the wage protection system grew by 4% annually, while average salaries saw a 7.2% year-on-year increase as of September, the report highlighted.
