MENA Newswire News Desk: The United Arab Emirates (UAE) is projected to see its Gross Domestic Product (GDP) grow by 3.3 percent in 2024 and rise to 4.1 percent in 2025, according to the latest semi-annual Middle East and North Africa (MENA) Economic Update released today by the World Bank. Titled “Growth in the Middle East and North Africa,” the report highlights that the UAE is expected to lead with real GDP per capita growth rates of 2.5 percent in 2024 and 3.4 percent in 2025, driven by robust expansion in the non-oil sector.
The report indicates that the UAE’s current account surplus is anticipated to decline to 7.5 percent of GDP in 2024, down from 9.2 percent in 2023, despite ongoing diversification efforts. Nevertheless, the UAE is expected to maintain fiscal surpluses of 4.9 percent of GDP in 2024 and 4.7 percent in 2025. In the broader MENA region, GDP growth is forecasted to modestly increase to 2.2 percent in 2024 from 1.8 percent in 2023.
This slight uptick is largely attributed to the Gulf Cooperation Council (GCC) countries, where growth is projected to rise from 0.5 percent in 2023 to 1.9 percent in 2024 and further strengthen to 4.2 percent in 2025. For 2025, MENA’s overall growth is expected to reach 3.8 percent. Growth in GCC countries is anticipated to strengthen to 4.2 percent, up from 1.9 percent in 2024. Developing oil exporters in the region are forecasted to grow by 2.7 percent in 2024, while growth for developing oil importers is projected at 2.1 percent.
However, the report notes that growth in the rest of MENA is expected to decelerate. Oil importers’ growth is forecasted to slow from 3.2 percent in 2023 to 2.1 percent in 2024, and non-GCC oil exporters are expected to see a decline from 3.2 percent to 2.7 percent over the same period. The findings underscore the varying economic trajectories within the MENA region, influenced by factors such as oil prices, diversification efforts, and global economic conditions. The UAE’s strong performance is particularly attributed to its robust non-oil sector growth and sustained fiscal surpluses.