ECO-UAE-FANA-REPORT UAE economy set to hit record growth in '25 ABU DHABI, Feb 19 (KUNA) -- The UAE economy is poised to hit record rates of growth and competitiveness in 2025 thanks to accumulated efforts and strategic steps and policies adopted by this Gulf country over the last years.
These efforts are primarily intended to shore up the pillars of a sustainable and diversified national economy that is based on innovation and knowledge, and keeps abreast of global transformations.
At the beginning of 2025, the UAE economy witnessed positive signs centered on a set of indications as its foreign trade unprecedentedly hit approximately three trillion dirhams in late 2024.
The Central Bank of the UAE (CBUAE) predicted the country's economic growth to accelerate to 4.5 percent this year, while International Monetary Fund (IMF) forecasts estimated higher growth rates.
It said that the UAE's strong performance, driven by comprehensive economic partnership agreements, is expected to continue through 2025, supporting real GDP growth projections of 4.0 percent in 2024 and accelerating to 4.5 percent in 2025.
UAE Minister of Economy Abdullah Al Marri expected the UAE national economy to grow by 5 - 6 percent in 2025, driven by strong performance in vital sectors like technology, renewable energy, trade, financial services, and infrastructure sectors.
In statements to the Emirates News Agency (WAM), Al Marri noted that the UAE's GDP growth averaged 4.8 percent between 2021 and 2024, while non-oil GDP growth averaged 6.2 percent.
Additionally, the contribution of non-oil sectors reached 75 percent of the national economy's GDP, reinforcing progress toward achieving the goals of the "We the UAE 2031" vision, he said.
The minister highlighted that continued growth is a clear indication of the national economy's ability to sustain high and sustainable expansion compared to advanced economies.
He further stated that the UAE has a clear economic strategy that includes the circular economy, the space economy, and emerging economic sectors, in addition to exploring new economic blocs, forming partnerships, and attracting foreign investments.
Al Marri added that thanks to the leadership's vision and directives, the UAE's economy enjoys high resilience and robustness in facing global challenges while maintaining sustainable growth.
This is supported by clear strategies that strengthen the new economic model based on knowledge, innovation, and advanced technology, according to the UAE minister of economy.
Al Marri's optimistic statements aligned with relevant estimates and forecasts recently made by international institutions as the International Monetary Fund (IMF) projected the UAE economy to record the highest growth in the region for 2025.
In this regard, Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), stated that the UAE's economy had demonstrated a high capacity to withstand global shocks in recent years, while the non-oil sector continued to grow.
In a statement to the Emirates News Agency (WAM), Azour noted that the non-oil sector's growth rate over the past years had ranged between 4.5 and 5.5 percent, reflecting the significant impact of the non-oil sector on the UAE economy, with oil revenues also contributing to boosting growth levels in the country.
The comprehensive economic agreements hammered out by the UAE with several countries have beefed up its trade partnerships, thus contributing to non-oil trade growth in 2024 to hit AED 2.9 trillion (about USD 815.7 billion), making up a growth of 14.6 percent, compared with 2023.
In pursuit of the UAE's economic objectives, Abu Dhabi is strengthening international ties with countries around the world to build on its position as a global trade and logistics hub. Signing Comprehensive Economic Partnership Agreements (CEPAs) is key to this goal.
Since the CEPAs was launched in September 2021, the UAE has clinched agreements with 24 countries in five continents, including 18 deals that have been officially signed and six agreements that have entered into force and the rest to be officially signed later.
The UAE cabinet approved the country's federal general budget for fiscal year 2025. The budget, setting both revenues and expenditures at AED 71.5 billion, aims to maintain a balanced fiscal framework.
The 2025 federal budget is the largest in the nation's history, reflecting the resilience of the national economy and the sustainability of resources allocated to key developmental, economic, and social projects.
Credit ratings agency Fitch assigned the UAE an AA-(minus) rating with a stable outlook, citing moderate consolidated public debt levels, high GDP per capita, and its strong net external asset position, marking the federal government's first credit rating from Fitch.
It also received an Aa2 rating in creditworthiness, with a stable outlook for the national economy by the international rating agency, Moody's. The UAE received the highest sovereign rating in the region.
The UAE's financial, banking and insurance sector saw significant growth since its banking sector is the largest in the Middle East, with total assets amounting to AED 4.4 trillion at the end of November 2024, compared to AED 4.0 trillion in 2023.
Regarding the financial markets, AED 257 billion were added to the market value of the financial markets in 2024, buoyed by the country's positive economic performance in general.
As for the Emirati aviation and air cargo sector, it recorded a record performance during 2024, with passenger traffic having edged up by 10 percent to reach 147.8 million passengers against 134 million passengers in 2023.
In addition, air traffic recorded 1.03 million flights in 2024 in an unprecedented number in the country's history of air traffic.
Other sectors involving industry, real estate and renewable energy sectors also recorded remarkable growth rates in 2024.
Apart from its major international projects, the UAE launched a new project in January 2015, aiming at providing renewable energy around the clock and contributing to providing about "1 gigawatt per day" of the base load of renewable energy. The fresh project also embraces a photovoltaic solar energy station with a capacity of 5.2 gigawatts, in addition to battery systems for energy storage with a capacity of 19 gigawatts per day. (end) wam.mt