The World Bank has projected a promising growth trajectory for the United Arab Emirates (UAE), predicting its real GDP to increase by 3.8% in 2025. This follows an expected growth of 3.4% in 2023 and 3.7% in 2024, as detailed in the recent Global Economic Prospects report.
The report highlighted a robust performance in the non-oil sector within the Gulf Cooperation Council (GCC) countries, projecting an overall growth in the GCC of 3.6% in 2024, and further rising to 3.8% in 2025.
However, the broader Middle East and North Africa (MENA) region is facing challenges, with the growth rate sharply declining to 1.9% in 2023. This downturn is attributed to several factors, including oil production cuts, high inflation rates, and subdued private sector activity in oil-importing economies. Nevertheless, the World Bank remains optimistic about the MENA region’s recovery, forecasting a growth resurgence to 3.5% in both 2024 and 2025.
The report also sheds light on the economic prospects of other Gulf nations. Saudi Arabia is expected to see a growth of 4.1% in 2023, increasing slightly to 4.2% in 2024. Kuwait’s economy is projected to grow by 2.6% in 2023 and 2.7% in 2024, while Bahrain anticipates growth rates of 3.3% and 3.2% in 2024 and 2025, respectively.
For Qatar, the World Bank forecasts a 2.5% growth in 2023, with a rise to 3.1% in 2024. Oman’s economy is projected to grow by 2.7% in 2024 and 2.9% in 2025.