The UAE GDP is expected to grow by 3.3 percent in 2024, rising to 4.1 percent in 2025, according to the World Bank’s latest semi-annual MENA Economic Update.
Titled 'Growth in the Middle East and North Africa', the report highlighted that the UAE is projected to lead with real GDP per capita growth rates of 2.5% in 2024 and 3.4% in 2025, driven by strong expansion in the non-oil sector.
According to the report, the UAE’s current account surplus is expected to decline to 7.5 percent of GDP in 2024, down from 9.2 percent of GDP in 2023, despite continued diversification efforts. The UAE is expected to sustain fiscal surpluses of 4.9 percent of GDP in 2024 and 4.7 percent in 2025.
In 2025, MENA is expected to grow at 3.8 percent. Growth in GCC countries is expected to strengthen to 4.2 percent in 2025, up from 1.9 percent in 2024. Growth in developing oil exporters is forecast at 2.7 percent in 2024 and at 2.1 percent for developing oil importers.
The report predicts a modest increase in the region's GDP growth, rising to 2.2% in real terms in 2024, up from 1.8% in 2023. This improvement is largely attributed to the Gulf Cooperation Council (GCC) countries, where growth is expected to climb from 0.5% in 2023 to 1.9% in 2024, and further to 4.2% in 2025. In contrast, growth in the rest of the MENA region is anticipated to slow down. Growth among oil-importing nations is projected to decline from 3.2% in 2023 to 2.1% in 2024, while non-GCC oil exporters are expected to see a decrease from 3.2% to 2.7%.