Today's Edition
BATOOL GHAITH (ABU DHABI)
The UAE’s GDP per capita has climbed to $52,186.9 in 2025, according to the MENAAP Economic Update: Jobs and Women – Untapped Talent, Unrealised Growth report published by the World Bank on Tuesday.
The report highlights that the UAE’s economy remains strong and resilient, driven by broad-based growth and strategic diversification into non-oil sectors including infrastructure, technology, energy, and skills development.
The World Bank reported that the UAE’s real GDP is projected to grow by 4.8% in 2025, up from 3.9% in 2024. This growth is attributed to contributions from financial services, construction, transport, and real estate, along with the gradual unwinding of OPEC+ oil production cuts.
According to the report, oil production increased by 2% year-on-year in the first quarter of 2025, with the UAE securing a 300,000 barrels per day quota increase effective through September 2026.
Inflation eased to 1.4% in Q1 2025, down from 1.9% in the same period of 2024. The report said that the UAE’s fiscal position remains solid, supported by low public debt, substantial fiscal buffers, and strong hydrocarbon revenues.
Despite global uncertainties, the UAE has continued to attract foreign investment and boost its competitiveness. The report explained that sustained non-oil growth and ongoing structural reforms are providing a solid foundation for medium-term stability. The outlook is positive, with the economy expected to grow by 5% in 2026 and 5.1% in 2027.
However, the World Bank also highlighted labour market challenges, especially concerning the participation of women. Across the MENAAP region, only one in five working-age women is part of the labour force, the lowest rate in the world. The report emphasised that legal barriers, restrictive social norms, and inadequate childcare continue to limit women’s economic engagement.
The report warned that these gaps in female labour force participation pose long-term economic risks. It estimated that removing gender-based barriers could raise GDP per capita by 20 to 30% in countries such as Egypt, Jordan, and Pakistan.
According to the report, the region’s economic future depends not only on fiscal and structural reforms, but also on unleashing the potential of its entire population.
For the UAE, continued diversification, governance improvements, and a more inclusive labour market will be essential to sustaining growth and resilience in the years ahead.
Wajdi Makhamreh, economics expert, said that the UAE’s investments in infrastructure, technology, and energy transitions are poised to underpin sustained GDP growth of around 4-5% annually beyond 2025, fostering economic resilience and diversification amid global uncertainties like oil price volatility and geopolitical tensions.
He indicated that the UAE’s efforts, including the Energy Strategy 2050 targeting 50% clean energy by mid-century and advancements in AI, solar projects, and nuclear power, are reducing hydrocarbon dependence while attracting foreign direct investment and bolstering non-oil sectors such as tourism, finance, real estate, and logistics.
“This trajectory aligns with projections from bodies like the IMF and World Bank, where structural reforms and infrastructure momentum mitigate risks and enhance long-term stability,” Makhamreh told Aletihad.
According to Makhamreh, the balance between oil and non-oil GDP growth reflects a maturing diversification strategy, with non-oil sectors increasingly driving expansion, while oil provides a stabilising fiscal anchor.
