https://arab.news/zaz6a
RIYADH: The UAE’s economy received a positive outlook, with the nation’s central bank predicting a substantial 5.2 percent growth in the gross domestic product by 2025.
According to the Central Bank of the UAE, the country’s GDP is expected to rise by 4.2 percent in 2024 before accelerating to 5.2 percent the following year.
This growth projection is a follow-up to the bank’s estimate of a 3.1 percent expansion in 2023.
The quarterly economic review for the fourth quarter of 2023 by CBUAE provides a breakdown of the expected shift, forecasting a 4.7 percent rise in non-oil GDP for both 2024 and 2025.
Similarly, oil GDP growth is projected at 2.9 percent for 2024, with a significant jump to 6.2 percent predicted for 2025.
Financially, the UAE showed a robust fiscal balance in the first nine months of 2023, posting a surplus of 61 billion dirhams ($16.6 billion), equivalent to 4.4 percent of GDP.
This financial health is supported by total revenues of approximately 370 billion dirhams against expenditures of around 309 billion dirhams.
The report further highlighted that the introduction of a federal corporate tax is expected to bolster government finances further, enhancing revenue diversification beyond the oil sector.
Moreover, the CBUAE study indicates sustained strength in the non-oil private sector, evidenced by a Purchasing Managers’ Index of 56.6 in January, reflecting continued business confidence and economic dynamism driven by steady demand and sales.
These factors are expected to underpin ongoing production expansion and investment in new projects, reinforcing the UAE’s economic resilience and diversification efforts.
The apex bank’s predictions for the UAE’s economic growth do not align with the more conservative figures projected by the World Bank.
The World Bank’s Global Economic Prospects report set the UAE’s real GDP growth at 3.4 percent for 2023, with a gradual rise to 3.7 percent in 2024 and 3.8 percent in 2025.
In a more extensive regional outlook, specific projections for other Gulf countries include a 4.1 percent growth for Saudi Arabia in 2024 and similar modest growth forecasts for Kuwait, Bahrain and Qatar as well as Oman.