UAE Economic Growth Expected To Outpace GCC Nations By 2025, According To IMF

Dr. Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), has highlighted the UAE's economic prospects. He stated that the UAE is expected to lead the Gulf Cooperation Council (GCC) in economic growth by 2025, with significant contributions from its non-oil sector.

Dr. Azour noted that the UAE's non-oil sector is anticipated to grow between 4% and 5% in 2025. "This robust growth underscores the effectiveness of the country's economic policies," he said during a conference organised by the Dubai International Financial Centre (DIFC) in collaboration with the IMF.

The UAE has shown remarkable adaptability to global economic and geopolitical changes, positioning itself as a central hub between major economic blocs. Dr. Azour praised this adaptability, noting how it has helped sustain high growth rates despite global challenges.

Investment in digital sectors, renewable energy, and green initiatives are key factors supporting the UAE's economic outlook. The country has also focused on diversifying investment sources and enhancing climate sustainability, which have been crucial in maintaining its competitive edge.

The UAE economy has undergone significant transformations due to global dynamics, including challenges like the COVID-19 pandemic. Dr. Azour mentioned that these challenges have enhanced the country's resilience and adaptability through advanced technology adoption.

"Through the adoption of advanced technologies, the UAE improved its services, boosting competitiveness and reinforcing its status as a global economic and financial hub," he stated. This technological advancement has been pivotal in strengthening its position globally.

Investment Appeal and Key Economic Events

The UAE has become an attractive destination for global investments by investing heavily in promising sectors such as technology and renewable energy. Significant events like Expo 2020 Dubai and COP28 have further enhanced this appeal.

Dr. Azour emphasised that Dubai, in particular, serves as a safe haven for investors and strategic planning destinations. Investment in promising sectors will continue to play a crucial role in advancing both the UAE and Dubai economies.

Regional Economic Outlook

Discussing the broader Middle East region, Dr. Azour explained that economic conditions vary across countries based on their specific economies. He stressed enhancing economic stability as a current priority while improving medium-term growth prospects.

The IMF remains committed to supporting Middle Eastern and North African economies. This year alone, it provided US$13.4 billion in funding to countries including Pakistan. Dr. Azour projected modest regional growth improvement from an average of 2.1% this year to 4% next year.

The UAE's strategic investments and adaptability have positioned it well for future growth within the GCC region by 2025. Its focus on non-oil sectors continues to drive robust economic performance amid global challenges.

With inputs from WAM