Today's Edition
KHALED AL KHAWALDEH (ABU DHABI)
The UAE is forecasted to lead economic growth in the GCC, supported by robust expansion in non-oil sectors and strategic investments in innovation and infrastructure, according to a new report by the Institute of International Finance (IIF).
The IFF predicts that the UAE's economy will grow by 4% in 2024 and 5.1% in 2025, outpacing other GCC nations and reflecting the country's commitment to economic diversification.
The UAE's projected 5.1% GDP growth for 2025 places it at the forefront of the GCC, outpacing Saudi Arabia (4%), Bahrain (3.4%), Kuwait (2.9%), Oman (2.6%), and Qatar (1.4%).
"The economy will continue to enjoy robust growth in 2024 and 2025 of around 4%, supported by continued strong domestic demand. Dubai's strong growth continues to be driven by tourism and hospitality," the report said.
The IFF noted that the UAE remained the main regional destination for FDI inflow, attracting about $30 billion in 2023, nearly 6% of GDP, the highest among emerging economies.
This was attributed to the business-friendly environment, and key reforms, such as allowing 100% foreign ownership in vital sectors and strengthening intellectual property rights.
Additionally, the report noted the UAE Central Bank's regulations on digital currencies enhanced confidence among global investors, positioning the UAE as a leader in financial innovation.
