UAE Central Bank maintains positive GDP growth outlook for 2024-2026
Date
12/24/2024 8:30:40 AM
(MENAFN) The Central bank of the United Arab Emirates (CBUAE) has reaffirmed its real GDP growth projection for 2024 at 4.0 percent, with expectations of accelerating growth in the following years. The growth rate is forecasted to rise to 4.5 percent in 2025 and further to 5.5 percent in 2026.
In its Quarterly Economic Review - December 2024, released on Monday, the CBUAE attributed the growth for the current year to the strong performance in several key sectors, including tourism, transportation, financial and insurance services, construction and real estate, and communication.
Non-oil GDP growth has shown remarkable acceleration, reaching 4.8 percent year-on-year (YoY) in Q2 2024, up from 4.0 percent YoY in the previous quarter. This growth was largely driven by a faster pace of expansion in manufacturing, trade, transportation and storage, and real estate activities.
The non-oil sector is expected to continue its strong performance, with growth projected at 4.9 percent in 2024 and 5.0 percent in 2025. This is mainly attributed to strategic policies and government initiatives aimed at attracting foreign direct investments (FDI) and promoting economic diversification.
In Q3 2024, the 16 non-oil sectors maintained their steady growth momentum. Wholesale and retail trade, manufacturing, and construction sectors remained key drivers of the non-oil economy. Notably, the manufacturing sector continued to attract significant FDI, in alignment with both Emirates' and federal strategies, while the construction sector also experienced robust growth in the first nine months of 2024.
These positive trends reflect the UAE’s continued efforts to diversify its economy and strengthen its position as a regional and global economic hub.
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