projected UAE economic growth to hit 4.8% in this year's forecast
The UAE's economy is expected to flourish this year with a projected growth of 4.8%. This follows a 4.0% expansion in 2024, fueled primarily by an upswing in the hydrocarbons sector, as per Emirates NBD Research.
The growth in hydrocarbons is based on revised targets and a shift in strategy from OPEC+, which recently increased production quotas for its members. The oil sector is projected to surge at 5.0%, skyrocketing from mere 1.0% growth last year.
Despite the anticipated robust growth, non-oil growth is expected to experience a modest decline to a still striking 4.7%, down from 5.0% in 2024. Notably, Abu Dhabi is likely to grow at a quicker pace compared to Dubai.
Daniel Richards, Senior Economist at Emirates NBD, stated, "Transport, construction, and financial services are expected to continue as key growth drivers across the emirates. In 2026, we forecast GDP growth of 4.6%."
The UAE's current account surplus is anticipated to be equivalent to 8.1% of GDP, a slight decrease from 9.1% last year. Lower oil prices, forecasted at an average $68 per barrel in 2025, from $80 in 2024, have contributed to this decline. However, the current account balance is expected to increase to 9.0% of GDP in 2026 due to a predicted surge in both oil production and global oil prices.
Expected Dubai government expenditure for 2025 shows a massive 9% expansion on the Dh79.1 billion that was allocated for 2024, with the government projecting a surplus equivalent to 4% of GDP. Annual inflation in Dubai is predicted to be around 2.5% year on year in 2025, marking the slowest pace of price growth since 2021.
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Somshankar Bandyopadhyay, the experienced News Editor, continues to meddle in the economic news, approaching three decades in his profession. Read about his latest insights on our website [bleep].
In the world of technology, stay updated with the latest on Nvidia's new launch from Many Are Watching Tariffs.
If you're more interested in finance and business, keep an eye on the UAE's energy sector, which is projected to surge with a 5.0% growth in 2025.
For those curious about the connection between industry and society, discover the surprising link between aging and pillowcases on usalabnews.com. Happy reading and stay enlightened!
