Latest news with #UAEeconomy
Khaleej Times
08-07-2025
- Business
- Khaleej Times
UAE non-oil economy to grow faster at 5.5% in 2025, led by tourism, retail, says report
UAE's non-oil economy is projected to grow faster this year at 5.5 per cent as compared to five per cent, driven by tourism, retail, real estate and private credit growth, according to Capital Economics. 'UAE's non-oil sector has seen a strong run of growth recently, and we think that robust activity in tourism and retail sectors, as well as solid credit growth, means that non-oil GDP growth will accelerate this year. So far this year, the non-oil sector has sustained strong growth,' said James Swanston, senior economist for the Middle East and North Africa region at Capital Economics. 'Alongside strong lending growth, tourist arrivals, and retail traffic, we have pencilled in non-oil GDP growth accelerating to 5.5 per cent this year, from 5.0 per cent,' he said in the country report. In its second quarter 2025 report, the Central Bank of the UAE had projected 4.4 per cent non-oil sector growth for both 2025 and 2026. 'This sustained growth is primarily driven by the government's strategic plans and policies aimed at attracting foreign investment, fostering innovation and promoting key non-hydrocarbon sectors, such as industrial manufacturing, tourism, transport and the digital economy, which align with key national initiatives within the 'We the UAE 2031' vision,' said the Central bank. After the Covid-19 pandemic, the UAE's non-oil sector has been growing exceptionally, especially the real estate, aviation, travel and tourism, retail and logistics. This has pushed the UAE's population to an all-time high. Private credit growth strengthened, partly fuelled by mortgage lending. 'Admittedly, this only accounts for 20 per cent of all home sales, but the share has increased and could expand with a new initiative to help first-time buyers gain access to mortgages via banks.' Overall, James Swanston of Capital Economics said GDP forecasted for the UAE will accelerate to 5.8 per cent this year and to 6.5 per cent in 2026. 'We expect the UAE's economic growth to accelerate over the coming quarters. For one thing, the oil sector is likely to record a sharp pick-up in output. While production has only increased by 0.1 million barrels per day since Opec+ began to unwind cuts in April, July's meeting has laid up for a more aggressive second half of the year and we expect the UAE's oil output to rise by 16 per cent to 3.4 million bpd by year-end and a further 7 per cent in 2026,' Swanston said, adding that this is a greater relative increase than other Gulf states. Meanwhile, the UAE's strong balance sheet — as the country's public finance data showed a budget surplus of 4.8 per cent of GDP — means there is plenty of scope for fiscal policy to be kept loose.
Khaleej Times
30-06-2025
- Business
- Khaleej Times
UAE Golden Visa now targets talent in AI, climate sectors, says expert
The UAE has expanded the scope of its highly popular Golden Visa programme, shifting the focus from solely attracting foreign investments and wealth to fostering long-term value creation in the economy. Entrepreneurs, tech founders, and investors are now being evaluated not only on the size of their investments but on the overall impact they can bring to the local ecosystem, according to Gaurav Keswani, founder and managing director of JSB, a Dubai-based advisory firm specialising in company formation and visa services. 'After Covid-19, the government's primary goal was to attract capital into the country. That's why, during the initial wave in 2022–23, many of the Golden Visa recipients were real estate investors,' Keswani told Khaleej Times in an interview. 'However, from 2023–24 onwards, we entered the second phase of the programme. The government empowered multiple departments — including the Ministry of Culture, Ministry of Sports, and Abu Dhabi Residents Office — to scout globally for individuals who could make the UAE their second home and add meaningful value to the economy.' Keswani emphasised that the programme is no longer just about capital inflow. 'It's now about long-term growth potential. We're seeing candidates from sectors like AI, IoT, cloud computing, and private wealth management. The government's approach has evolved; it now targets individuals with specialised skills who can contribute to the broader community.' The UAE introduced its long-term residency programme in 2019 to attract foreign investment. According to the latest figures, 158,000 people received Golden Visas in Dubai alone in 2023. Of these, approximately 40% were investors, with the remaining 60 per cent spread across various other categories. 'About 22 per cent of the total were professionals from banking and non-banking sectors, including those involved in AI and climate change,' Keswani noted. 'The government has made substantial investments across various industries and is now strategically attracting talent aligned with those sectors.' He added that the initial phase of the programme was capital-centric. 'In recent years, we've seen eight of the world's top 20 hedge funds establish operations in the UAE, bringing around $48 billion in business. But with such a capital influx, there's a need for the right talent — CEOs, CTOs, and other key executives — to optimise and grow that investment. That's why the government's focus has shifted from purely capital to a more strategic, talent-driven approach.' More categories The Golden Visa currently offers a 10-year residency to a wide range of individuals, including outstanding students, scientists, graduates from top global universities, coders, and highly qualified professionals. According to Keswani, whose firm has arranged visas for over 250 individuals in the past six months, additional categories are expected to be added in the near future. 'Yes, definitely — especially in areas like AI, climate tech, IoT, and cloud computing,' he said. 'In the past five months alone, we've seen a significant rise in the number of private bankers, AI consultants, and cloud experts being shortlisted. These professionals are often behind large-scale projects or are significant investors themselves, and the programme is adapting accordingly.' Greater flexibility for professionals Keswani also highlighted the flexibility of the UAE's Golden Visa scheme. 'The long-term residency allows individuals to switch employers or even leave their jobs to pursue entrepreneurship while continuing to reside in the UAE,' he explained. 'The government has done an excellent job targeting the Asia-Pacific talent pool. Moreover, senior professionals like CEOs and CTOs with substantial income can invest in property here, obtain residency, and manage their assets independently.' He emphasised a key advantage of the programme: 'Residency and investment are treated as two separate legal entities. So if someone wants to liquidate an investment and move to a different asset class, they can do so without affecting their residency status. This structure gives skilled professionals flexibility and control, which is why the programme has resonated so strongly with global talent.'
Khaleej Times
26-06-2025
- Business
- Khaleej Times
Global ratings agencies laud UAE's economic resilience
The world's top three credit rating agencies – Fitch Ratings (Fitch), S&P Global (S&P), and Moody's Investors Service (Moody's) – have assigned strong sovereign credit ratings for the UAE in their latest updates. S&P announced on June 17, that it assigned the UAE's sovereign rating at 'AA' with a stable outlook. Moody's, in its annual review for 2025, affirmed the rating at 'Aa2' with a stable outlook. Fitch also affirmed the UAE's rating at 'AA-' with a stable outlook on June 24. This consensus by all three major global credit rating agencies highlights the UAE's advanced fiscal standing and strengthens its position among the few countries globally with strong sovereign credit ratings from all three top agencies, and reflects the continued international confidence in the strength of the UAE economy and the sustainability of its fiscal policies, analysts say. The ratings confirm the UAE's ability to diversify and boost non-oil revenues, maintain sound fiscal discipline, manage risks effectively, and uphold prudent fiscal policies. All of these factors have contributed positively to economic stability and sustained growth across various sectors. S&P's report reflects the agency's assessment of the UAE's strong financial position, in addition to the strength of the government's consolidated sovereign assets. The agency expects that regional geopolitical tensions will, overall, have a limited impact on the UAE, given the country's large sovereign wealth and track record of internal stability. Moody's report highlights the UAE government's continued efforts to expand and diversify non-oil revenue sources, support the development of non-oil sectors, and enhance the country's appeal to foreign investors and skilled talent. Despite persistent geopolitical tensions in the region, the UAE's effective policy frameworks help mitigate these challenges through advancing economic diversification. Fitch's report noted the elevated geopolitical risks in the region, while affirming the UAE's strong ability to withstand short-term disruptions, supported by its substantial fiscal and external buffers. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, said: 'The affirmation of the UAE's strong sovereign rating by the world's top three international credit rating agencies, and their consensus on a stable outlook, reflects the deep-rooted international confidence in the resilience of our national economy and the efficiency of our fiscal policies.' He affirmed that the UAE continues to implement economic policies grounded in diversification, transparency, and fiscal discipline, with a strong focus on increasing non-oil revenues and achieving financial sustainability. This reflects the integrated performance of government entities and long-term strategic planning, which continue to reinforce the UAE's position as a flexible and credible global economic hub. Sheikh Maktoum added: 'At the Ministry of Finance, we remain committed to working closely with all government entities to enhance the efficiency of resource management, develop productive sectors, and improve the country's investment appeal. The development of the sovereign yield curve for the dirham was a major milestone in enhancing market transparency, providing investors with a reliable benchmark for pricing dirham-denominated debt instruments. This strengthens the UAE's presence on the global economic map and reinforces its ability to confidently navigate regional and international changes and challenges — by expanding the investor base and enhancing the country's reputation as a reliable and attractive destination in global capital markets.'
Zawya
26-06-2025
- Business
- Zawya
UAE among elite global economies with strong & stable sovereign ratings from the top three international credit rating agencies
The UAE is among the few countries worldwide with strong credit ratings from all three major international rating agencies Maktoum bin Mohammed: Confirmation of the strong sovereign rating reflects the strength of the UAE economy and the sustainability of its fiscal policies The UAE's strong ratings are the result of an integrated economic vision and effective government action Economic diversification and fiscal discipline reinforce international institutional confidence in the country Abu Dhabi - United Arab Emirates: The United Arab Emirates (UAE) Ministry of Finance announced that the world's top three credit rating agencies – Fitch Ratings (Fitch), S&P Global (S&P), and Moody's Investors Service (Moody's) – have assigned sovereign credit rating for the United Arab Emirates. This step reflects the continued international confidence in the strength of the UAE economy and the sustainability of its fiscal policies. S&P announced, on 17 June 2025, that it assigned the UAE's sovereign rating at 'AA' with a stable outlook. Moody's, in its annual review for 2025, affirmed the rating at 'Aa2' with a stable outlook. Fitch also affirmed the UAE's rating at 'AA-' with a stable outlook on 24 June 2025. This consensus by all three major global credit rating agencies highlights the UAE's advanced fiscal standing and strengthens its position among the few countries globally with strong sovereign credit ratings from all three top agencies. Integrated Government Performance On this occasion, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, said: 'The affirmation of the UAE's strong sovereign rating by the world's top three international credit rating agencies, and their consensus on a stable outlook, reflects the deep-rooted international confidence in the resilience of our national economy and the efficiency of our fiscal policies. This is the result of a comprehensive economic vision led by His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE (may God protect him), and closely followed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai (may God preserve him).' His Highness affirmed that the UAE continues to implement economic policies grounded in diversification, transparency, and fiscal discipline, with a strong focus on increasing non-oil revenues and achieving financial sustainability. This reflects the integrated performance of government entities and long-term strategic planning, which continue to reinforce the UAE's position as a flexible and credible global economic hub. He added: 'At the Ministry of Finance, we remain committed to working closely with all government entities to enhance the efficiency of resource management, develop productive sectors, and improve the country's investment appeal. The development of the sovereign yield curve for the dirham was a major milestone in enhancing market transparency, providing investors with a reliable benchmark for pricing dirham-denominated debt instruments. This strengthens the UAE's presence on the global economic map and reinforces its ability to confidently navigate regional and international changes and challenges — by expanding the investor base and enhancing the country's reputation as a reliable and attractive destination in global capital markets.' Sustainable Growth The ratings confirm the UAE's ability to diversify and boost non-oil revenues, maintain sound fiscal discipline, manage risks effectively, and uphold prudent fiscal policies. All of these factors have contributed positively to economic stability and sustained growth across various sectors. S&P's report reflects the agency's assessment of the UAE's strong financial position, in addition to the strength of the government's consolidated sovereign assets. The agency expects that regional geopolitical tensions will, overall, have a limited impact on the UAE, given the country's large sovereign wealth and track record of internal stability. Moody's report highlights the UAE government's continued efforts to expand and diversify non-oil revenue sources, support the development of non-oil sectors, and enhance the country's appeal to foreign investors and skilled talent. Despite persistent geopolitical tensions in the region, the UAE's effective policy frameworks help mitigate these challenges through advancing economic diversification. Fitch's report noted the elevated geopolitical risks in the region, while affirming the UAE's strong ability to withstand short-term disruptions, supported by its substantial fiscal and external buffers. This achievement is yet another testament to the UAE's continued success in striking a balance between fiscal stability and economic growth. It further reinforces international investor confidence and affirms the UAE's status as a secure and stable destination for business and investment.
The National
26-06-2025
- Business
- The National
UAE economy endorsed by top credit rating agencies in 'vote of investor confidence'
The world's top three credit rating agencies – Fitch Ratings, S&P Global and Moody's Investors Service – have assigned strong sovereign credit rating for the UAE as it continues to strengthen economic diversification efforts and boost non-oil sector growth. It reflects the continued international confidence in the strength of the UAE economy and the sustainability of its fiscal policies, the UAE Ministry of Finance said on Wednesday, according to state news agency Wam. A sovereign credit rating measures a government's ability to repay its debts. It gives investors insights into the level of risk associated with investing in the debt of a particular country. S&P announced on June 17 that it assigned the UAE's sovereign rating at 'AA' with a stable outlook. Moody's affirmed the UAE's rating at 'Aa2' with a stable outlook in its annual review for this year. 'Aa' ratings are considered to be of high quality and subject to very low credit risk. 'Aa2' is the third-highest rating on Moody's scale. Fitch also affirmed the UAE's rating at 'AA-' with a stable outlook, on June 24. The consensus highlights the UAE's 'advanced fiscal standing' and strengthens its position among the few countries globally with strong sovereign credit ratings from all three top agencies, the ministry said. 'The affirmation of the UAE's strong sovereign rating by the world's top three international credit rating agencies, and their consensus on a stable outlook, reflects the deep-rooted international confidence in the resilience of our national economy and the efficiency of our fiscal policies,' said Sheikh Maktoum bin Mohammed, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance. The UAE's economy grew by 4 per cent last year, driven by a strong expansion in its non-oil sector. The country's real gross domestic product reached Dh1.776 trillion ($484.7 billion), the UAE's Ministry of Economy said this month. The non-oil economy grew by 5 per cent annually to Dh1.34 trillion, accounting for more than 75 per cent of the country's economic activity, while oil-related activities contributed Dh434 billion to the overall economy. The UAE, the Arab world's second-largest economy, has been focusing heavily on diversifying away from oil by developing sectors such as technology, manufacturing, tourism, trade and innovation. The country has introduced several reforms including longer-stay residence visas as well as new visa categories to attract more talent. The UAE's non-oil trade hit a record Dh3 trillion last year − up 14.6 per cent year-on-year, boosted by its Comprehensive Economic Partnership Agreement programme. Deals that the Emirates has signed with nations from Colombia to Australia have contributed Dh135 billion to the country's non-oil trade, an increase of 42 per cent compared with the previous year. The ratings confirm the UAE's ability to diversify and boost non-oil revenue, maintain sound fiscal discipline, manage risks effectively and uphold prudent fiscal policies. All of these factors have contributed positively to economic stability and sustained growth across various sectors, the Ministry of Finance said. The 'AA-' rating reflects the UAE's moderate consolidated government debt, strong net external asset position and high GDP per member of the population, Fitch said. This benefits from Abu Dhabi's sovereign net foreign assets, which are among the highest of Fitch-rated sovereigns, the ratings agency added. The Fitch report noted the elevated geopolitical risks in the region, while affirming the UAE's strong ability to withstand short-term disruptions, supported by its substantial fiscal and external buffers. The agency projects the UAE's GDP to rise by 5.2 per cent this year, buoyed by a 9 per cent rise in oil production in Abu Dhabi. It estimates non-oil growth of more than 4 per cent, despite 'mounting global challenges'.
