“Amid supportive global economic trends and regional dynamics, the UAE’s GDP is projected to exceed 5% growth in 2025, following a solid 4% forecast for 2024.”
The UAE’s economic outlook remains bright, with expectations of GDP growth surpassing 5% in 2025, according to Michael Bolliger, Chief Investment Officer of Emerging Markets at UBS Global Wealth Management. This optimistic projection aligns closely with the International Monetary Fund’s (IMF) recent estimates, which maintain a forecast of 4% growth for 2024 and anticipate an increase to 5.1% in the following year.
During an online press briefing with the Emirates News Agency (WAM), Bolliger emphasized the various global factors influencing growth expectations in the Gulf Cooperation Council (GCC) countries, particularly those related to oil production and OPEC’s decisions. He also noted the significance of recent stimulus announcements in China and adjustments in monetary policy, including reductions in the reserve requirement rate, which are expected to stimulate market recovery on a global scale.
Bolliger elaborated that these factors are likely to have both direct and indirect effects on the UAE’s economic performance. The sustained growth momentum is anticipated to be supported by positive developments in the regional and global economies.
Furthermore, he pointed out that decisions made by the United States Federal Reserve regarding monetary policy will also play a critical role in shaping the economic landscape, influencing not only the UAE but other countries within the GCC.
As the UAE positions itself to harness these favorable conditions, stakeholders are optimistic about the potential for continued growth, increased investment opportunities, and the overall resilience of the UAE economy in the face of evolving global challenges.
