CBUAE projects 4.7% growth rate for 2025
23 Mar 2025 22:21
MAYS IBRAHIM (ABU DHABI)The UAE's economy is set for robust expansion, according to the Central Bank of the UAE (CBUAE). Its latest Quarterly Economic Review projects a 4.7% GDP growth in 2025, further accelerating to 5.7% in 2026.The report noted that the UAE's non-oil trade exceeded Dh2 trillion in the first nine months of 2024, a 14.9% year-on-year increase, "reflecting the successful implementation of the UAE's economic diversification plans and strengthening ties with its key trading partners."The non-hydrocarbon sector is expected to grow by 5.1% in 2025, according to the CBUAE.The hydrocarbon sector is also poised for a 3.6% expansion in 2025, followed by a further 8.5% growth in 2026.This is supported by gradual increases in oil production as OPEC+ lifts production cuts, in addition to ongoing and planned upstream and midstream oil and gas projects.The report also pointed out that the UAE's airports experienced a 10% increase in passenger traffic in 2024."Abu Dhabi Airports reported significant growth, handling 29.4 million passengers in 2024, a 28.1% increase from 2023, driven by network expansion, strategic partnerships, and a focus on delivering a world-class passenger experience," the report said."Abu Dhabi's expanding role as a leisure and business travel hub significantly contributes to the UAE's economic diversification efforts."Meanwhile, Dubai International Airport set a new record in 2024, welcoming 92.3 million passengers and surpassing its previous peak of 89.1 million in 2018.The UAE's tourism and aviation sectors remain key drivers of economic diversification, according to the report.The sustained growth in both sectors "reflects the success of planned initiatives aimed at enhancing connectivity, expanding hospitality infrastructure, and promoting the UAE as a global destination for leisure and business travel."The UAE banking sector remains resilient, with total assets reaching Dh4.56 trillion by the end of 2024.Lending grew by 9.5% year-on-year, driven by increased retail and corporate borrowing, while deposit growth reached 12.9% in Q4 2024.The insurance sector also demonstrated significant growth, with gross written premiums increasing by 21.4% year-on-year, and gross paid claims rising by 35.8%.The report also noted that the UAE government recorded a fiscal surplus of Dh96.3 billion (6.5% of GDP) in the first nine months of 2024, a 57.5% increase from the same period in 2023, driven by a 22.1% rise in tax revenues.Government capital expenditure increased by 15.4% year-on-year, reinforcing its commitment to infrastructure development and economic expansion.Inflation in the UAE remained well-controlled at 1.7% in 2024, significantly below the global average of 5.7%.The CBUAE maintained its 2025 inflation forecast for the UAE at 2.0%. Non-tradable components of the consumer basket are expected to be the main drivers, partially offset by moderating energy prices.The UAE's import sector reached Dh1.177 trillion in the first nine months of 2024, expanding by 12.9% year-on-year, with China, India, and the US as the top trading partners.
Gold remained a key trade commodity, accounting for 23.5% of total imports and 48.6% of total non-oil exports.
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