The International Monetary Fund (IMF) raises UAE’s economic outlook for 2025, attributing the boost to robust non-oil sector growth and stable oil prices.
The International Monetary Fund (IMF) has increased its forecast for the UAE’s GDP growth to 5.1% in 2025, up from the previous projection of 4.2% earlier this year. This revision comes as a result of strong performance in the UAE’s non-oil sectors and steady crude oil prices, reinforcing confidence in the country’s diversified economy.
The updated figures were released in the October edition of the IMF’s World Economic Outlook (WEO), marking a significant 0.9% upward revision from its April forecast. The report indicates that the UAE’s continued focus on expanding its non-oil sectors, including finance, tourism, and real estate, is driving the country’s economic growth. These sectors have played a crucial role in maintaining a steady trajectory, despite fluctuations in the global oil market.
In addition to the revised forecast for 2025, the IMF had previously raised its 2024 GDP growth estimate for the UAE to 4% in May, up from 3.5%. The upward adjustment reflects the country’s strong economic fundamentals and its ability to adapt to global economic challenges. With oil prices holding steady and significant investments pouring into non-oil industries, the UAE’s economy is set to grow at an accelerated pace in the coming years.
Commenting on the forecast, IMF representatives noted the resilience of the UAE economy, citing its successful diversification efforts as a key driver behind the improved outlook.
They highlighted that the UAE’s strategic economic planning, including substantial investments in infrastructure and innovation, has enabled the country to reduce its dependence on oil revenues and strengthen its non-oil sectors.
“The UAE’s economy is thriving, thanks to its diversified approach, which is yielding solid growth across various sectors. This resilience, coupled with sound policy measures, is setting the foundation for sustained economic prosperity,” an IMF spokesperson said.
The UAE’s economic growth is further supported by a stable financial environment, rising consumer confidence, and the government’s continued commitment to innovation and sustainability. Initiatives such as the Dubai Clean Energy Strategy 2050 and the UAE Net Zero 2050 strategic initiative are key components in the country’s long-term economic vision, ensuring sustainable growth and development.
As the UAE positions itself as a global hub for finance, trade, and tourism, the IMF’s latest forecast underscores the country’s rising stature in the global economic landscape. With robust growth expected in both the oil and non-oil sectors, the UAE is well on track to achieving its ambitious goals for the next decade.
