The Central Bank of the United Arab Emirates (CBUAE) has maintained its real GDP growth forecast at 4.0% for 2024, with projections of 4.5% in 2025 and 5.5% in 2026.
This optimistic outlook is largely attributed to robust performances in sectors such as tourism, transportation, financial and insurance services, construction, real estate and communications.
In the second quarter of 2024, non-oil GDP growth accelerated to 4.8% year-on-year, up from 4.0% in the previous quarter.
This growth was driven by manufacturing, trade, transportation and storage, and real estate activities.
The CBUAE anticipates that non-oil GDP will continue its strong performance, projecting growth rates of 4.9% in 2024 and 5.0% in 2025.
This is supported by government strategies to attract foreign investments and promote economic diversification.
The first half of 2024 saw the UAE’s non-oil trade exceed Dh1.3 trillion, up 10.6% year-on-year, reflecting the successful implementation of economic diversification plans.
Additionally, the fiscal sector reported a surplus of Dh65.7 billion, equivalent to 6.7% of GDP, marking a 38.8% increase from the same period in 2023.
The UAE’s Purchasing Managers’ Index (PMI) reached 54.1 in October 2024, indicating sustained business confidence and expansion in the non-oil private sector.
Employment indicators also showed positive trends, with a 4.0% year-on-year increase in the number of employees covered by the CBUAE Wages Protection System in September 2024 and a 7.2% rise in average employee salaries.
These developments underscore the UAE’s resilience and adaptability in the face of global economic challenges, reinforcing its position as a leading economy in the region.
