UAE GDP to grow by 4.2% in 2024, rising to 5.2% in 2025: Central Bank – Gulf Today

UAE GDP to grow by 4.2% in 2024, rising to 5.2% in 2025: Central Bank – Gulf Today





The photo has been used for illustrative purposes.

The Central Bank of the United Arab Emirates (CBUAE) expects the country’s Gross Domestic Product (GDP) to grow by 4.2 per cent in 2024, rising to 5.2 percent in 2025, while maintaining its estimate for a 3.1 percent growth in 2023.

In its quarterly economic review report for the fourth quarter (Q4) of 2023, the Central Bank also forecasted a non-oil GDP growth of 4.7 per cent in both 2024 and 2025, and an oil GDP growth of 2.9 per cent in 2024 and 6.2 per cent in 2025.

The Central Bank noted that the UAE’s consolidated fiscal balance for the first nine months of 2023 posted a surplus of Dhs61 billion, equivalent to 4.4 percent of GDP, with total revenues reaching around Dhs370 billion, while expenditures amounted to about Dhs309 billion.

The CBUAE report anticipated that the recent introduction of a federal corporate tax is poised to further strengthen government finances, contributing to the diversification of revenue sources away from the oil sector.

The report also pointed out the continued strength of the non-oil private sector, showing signs of robust economic activity, with the Purchasing Managers’ Index (PMI) reaching 56.6 in January 2024, driven