UAE Economy Projected to Grow by Up to 5% in 2025

The UAE economy is set for significant growth in 2025, with a forecast of up to 5%. This positive outlook is due to strong performances in both the oil and non-oil sectors, supported by government policies and favourable global conditions.

Diversification and Growth in Non-Oil Sectors

The UAE has worked hard to reduce its reliance on oil, and its focus on economic diversification is paying off. The non-oil sector is expected to see a 5% growth in 2025. This growth is largely due to heavy investments in technology and innovation, as well as the government’s push to boost industries like artificial intelligence (AI). Initiatives like the UAE National AI Strategy 2031 are helping to create a thriving tech sector, which is expected to grow in the coming years.

Oil Sector Contributions

The UAE’s oil sector will also contribute to the economy’s growth, though to a lesser extent. While global production limits set by OPEC+ might impact output, experts predict a 5% growth in oil production in 2025. This growth is expected to be driven by adjustments in production strategies and favourable base effects from previous years.

Government Initiatives and International Partnerships

The UAE government is implementing several strategies to attract foreign investments and foster economic growth. One of the key initiatives is the Comprehensive Economic Partnership Agreements (CEPA) with various countries. These partnerships have strengthened trade and helped non-oil trade reach AED 1.3 trillion in the first half of the year, making up 134% of the country’s GDP.

The government’s efforts to diversify and strengthen economic ties are paying off, helping the UAE adapt to changes in the global economy. As a result, the UAE is in a strong position to continue growing in the coming years.