On Tuesday, the International Monetary Fund (IMF) upgraded the growth projection of the United Arab Emirates, considering it to be a fast-expanding economy at 5.1% by 2025. Indeed, that upward adjustment reflects the bright economic resilience and diversification efforts in the UAE, ahead of many other Middle Eastern nations.
As the UAE continued to go from strength to strength, being at the forefront of the region with proactive economic strategies and unstinting commitment to diversification, it carved out itself as one beacon of stability and prosperity in the otherwise storm-tossed Middle East. Such development has helped improve the outlook through consistent positive growth in non-oil sectors, including tourism, real estate, construction, manufacturing, and financial services, according to the World Economic Outlook for October. All these sectors are critical drivers of the sustainability of the growth rate, reduce dependence on oil revenues, and promote a more balanced and resilient economy.
According to the visiting staff team’s head at the IMF, Ali Al-Eyd, this indicates that the country’s economic growth indeed represents a broad-based reality. “Foreign demand for real estate, increased bilateral and multilateral ties, and the UAE’s safe haven status continue to drive rapid growth in housing prices and an increase in rents, while adding to ample domestic liquidity,” Al-Eyd stated.
There is also the strategic increase in crude oil production by the UAE, which is in line with its OPEC+ quota. This boost in hydrocarbon GDP growth has been supported on the back of these particular strategic increases.
Such forward-looking economic policies of the UAE have found expression recently in what has turned out to be the largest budget for 2025 ever approved by the UAE Cabinet, which is Dh 71.5 billion. This significant budget is based on a rise in the oil revenue, corporate taxes, and income fees to be generated and maintains a budget surplus. James Swanston, an economist for the MENA region at Capital Economics, noted, “The strength of the UAE’s balance sheet means that it is well positioned to keep fiscal policy loose, supporting continued economic expansion.”
Tourism remains one of the economic pillars of the UAE strategy, receiving strong investments every year for further global appeal. A perfect example of this commitment is the upcoming Global Village event. Millions of tourists from all over the world will be attracted to it, to the cultural diversity of the UAE, entertainment, and innovative attractions. The event also confirms that the UAE will continue taking necessary measures to ensure it remains among the world’s finest destination to visit, significantly boosting the country’s economic value.
On the economic front, the goal is to record 7% growth in GDP every year and double GDP by Dh3 trillion by 2030. Abdulla Bin Touq Al Marri, UAE’s Minister of Economy, briefed on the strength of economy in the face of global trends, stating, “The UAE targets to be a global hub for the innovation-based economy by next decade.” This vision would lay down innovation, enhancement of technological capabilities, and strengthening of international partnerships as modalities towards maintaining competitive leads in the country.
As the UAE continued to go from strength to strength, being at the forefront of the region with proactive economic strategies and unstinting commitment to diversification, it carved out itself as one beacon of stability and prosperity in the otherwise storm-tossed Middle East.
