WASHINGTON: The UAE’s economy is looking strong for the coming years, with the World Bank’s latest MENA Economic Update predicting a GDP growth of 3.3% in 2024 and 4.1% in 2025. The report, titled “Growth in the Middle East and North Africa,” also points out that the UAE will lead in real GDP per capita growth, with 2.5% expected in 2024 and 3.4% in 2025, thanks to the non-oil sector’s solid performance.
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However, the UAE’s current account surplus is expected to dip slightly, dropping to 7.5% in 2024 from 9.2% in 2023. Despite this, the country will still maintain healthy fiscal surpluses of 4.9% in 2024 and 4.7% in 2025, according to the report.
Looking at the broader MENA region, overall growth is forecast to rise slightly to 2.2% in 2024, up from 1.8% in 2023. Much of this boost is driven by the Gulf Cooperation Council (GCC) countries, with growth expected to jump from 0.5% in 2023 to 1.9% in 2024, and a solid 4.2% in 2025.
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For the rest of MENA, things are a bit slower. Oil-importing countries are expected to see their growth slow from 3.2% in 2023 to 2.1% in 2024, while growth for non-GCC oil exporters is also forecast to drop, from 3.2% in 2023 to 2.7% in 2024.
Overall, the UAE seems to be heading for a strong few years, while the rest of the region will see more mixed results depending on oil-related factors.
