UAE's Non-Oil Economy Expected To Grow By 4.7% In 2024 Amid Strong Tourism And Real Estate Growth

The UAE's non-oil economy is projected to expand by 4.7% in 2024, according to Michael Bolliger, CIO Global Emerging Markets at UBS Global Wealth Management. This growth highlights the UAE's ability to adapt amid global challenges, supported by fiscal surpluses and economic diversification.

Bolliger emphasised that the non-oil sector's sustainable growth is fuelled by thriving tourism and real estate industries. Increased government spending on capital projects and strong foreign direct investment (FDI) inflows also contribute significantly. The real estate market is particularly robust, with residential sales up by 60% and more mortgage applications due to low interest rates.

The easing of visa procedures and business ownership laws has further encouraged businesses and tenants to invest in commercial properties in Dubai and Abu Dhabi. This has bolstered the construction sector, which remains a key economic driver thanks to ongoing government infrastructure investments.

The tourism industry in the UAE is witnessing substantial growth. Dubai's tourism has bounced back to pre-pandemic levels, with international visitor numbers rising steadily since the year began. This recovery underscores the sector's resilience and its role in supporting economic expansion.

In addition to these developments, Bolliger noted that oil GDP is anticipated to grow by 4.2% in 2025. He expressed confidence that the UAE economy will sustain its positive momentum over the coming years.

The International Monetary Fund (IMF) recently upheld its forecast for the UAE's GDP growth at 4% for 2024, with an increase to 5.1% expected in 2025. These projections reflect a stable economic outlook for the country as it continues on its growth trajectory.

With inputs from WAM