Projected to grow 4.8% in 2025, the UAE’s resilient economic model, powered by non-oil sectors and diversified partnerships, is set to outperform regional peers.
ABU DHABI – The UAE’s economy is demonstrating notable resilience in the face of a global slowdown, with the World Bank crediting its strategic trade diversification for a “smaller” impact compared to other regional nations.
In its latest assessment, the Bank noted that while economies heavily reliant on European and Western markets face significant risk, the UAE’s strong trade links with Asia—excluding China—provide a crucial buffer against recessions in the US, EU, and China.
Poised for Accelerated Growth
This insulated position underpins a robust growth forecast. The World Bank projects the UAE’s economy will expand by 4.8% in 2025, a substantial acceleration from its 2024 estimate. This growth is expected to be driven by a dynamic non-oil sector, including financial services, construction, transport, and a buoyant real estate market.
The positive outlook extends across the GCC, which is forecast to grow at 3.5% in 2025, bolstered by increased oil production and strong non-oil activity.
A Tale of Two Regions
The report, however, highlights a sharp regional divide. While the GCC anticipates stronger growth, other developing oil exporters in the MENA region—including Algeria, Iran, and Iraq—face a severe slowdown, with their collective growth projected to plummet to just 0.5% in 2025.
The World Bank’s optimistic projection for the UAE aligns with the International Monetary Fund’s (IMF) latest outlook, reinforcing a confident international consensus in the nation’s economic stability and its strategic shift towards a more diversified and globally-connected future.
