UAE's economy expected to grow 4.2% in 2025

The United Arab Emirates’ (UAE) economy is projected to grow by 4.2% in 2025, supported by economic diversification plans and a revival in the tourism sector. This marks a notable increase from this year's expected growth of 3.7%.

Reuters suggests the UAE will remain the fastest-growing economy in the Gulf in 2024 and 2025. A Reuters poll, conducted from July 8 to 22 with 24 economic experts, indicated that the UAE's growth momentum is expected to continue, bolstered by supportive financial policies and thriving non-oil sectors.

James Swanston, Middle East and North Africa economist at Capital Economics, stated that the UAE is likely to increase oil production faster than other OPEC+ members, maintaining its position as the fastest-growing economy in the Gulf through 2025. He added, "After OPEC+’s decision to keep oil production low for a longer period, economic growth in the GCC countries will be weaker this year than we expected."

Despite oil prices having struggled to stay above $80 per barrel, the UAE's strategic initiatives and robust economic policies position it for sustained growth and prosperity in the coming years. The country's commitment to diversification and innovation continues to drive optimism for its economic future.