Economic growth of UAE is to accelerate in 2025 and 2026

The country’s non-oil GDP growth is expected to remain strong at 4.9% in 2024 and 5% in 2025

The UAE’s real GDP growth is expected to remain stable at 4% in 2024, accelerating to 4.5% and 5.5% in 2025 and 2026, respectively, the UAE’s central bank said in its quarterly economic review for December 2024.

Growth expectations are underpinned by strong performances in key sectors such as tourism, transportation, financial and insurance services, construction, real estate and communication.

In the second quarter of 2024 non-oil GDP growth grew to 4.8% year on year, up from 4% in the previous quarter. This was driven by manufacturing, real estate, trade and transportation and storage.

Non-oil GDP growth is expected to remain strong at 4.9% in 2024 and 5% in 2025, supported by the government’s strategic plans and policies to attract foreign investments and promote economic diversification.

The comprehensive economic partnership agreements (Cepa) that the UAE has signed with many countries have bolstered its trade partnerships, leading to non-oil trade exceeding AED1.3 trillion ($353.93 billion) in the first half, equivalent to 134% of the country’s GDP.