International Institutions Project UAE Economy to Grow by 5.6% in 2025

Prominent international economic institutions have raised their growth forecasts for the UAE economy to 5.6% in 2025, reaffirming the resilience of the national economy and its ability to maintain expansion momentum amid global economic challenges.

Reports indicated that the drivers of this growth center around strong expansion in the financial services sector, tourism, and non-oil trade, alongside the continued inflow of foreign direct investments, which recorded record figures during the first half of the year.

International investors expressed growing confidence in the UAE regulatory environment, citing ease of doing business, economic openness, and the diversity of productive sectors as key factors making the UAE a leading investment destination in the region.

This performance casts a positive shadow on UAE financial markets, boosting investor confidence in major corporate shares and stimulating new listings in the Dubai and Abu Dhabi markets. This rate is among the highest across both emerging and developed market economies, consolidating the UAE's position as an engine of regional growth.

What do these terms mean?

Gross Domestic Product (GDP): The total value of goods and services produced by a country's economy over a full year, serving as the most comprehensive measure of the economy's size and growth pace.

Non-Oil Sector: All economic sectors that do not rely on oil, such as tourism, financial services, industry, and trade, which Gulf countries seek to develop to reduce reliance on oil revenues.

Foreign Direct Investment (FDI): Capital injected by companies or governments from outside the country into real projects within it, such as building factories or acquiring company stakes, serving as a strong indicator of international investors' confidence in the local business environment.