The UAE’s non-oil economy is expected to grow by 4.7 per cent in 2024, according to Michael Bolliger, CIO Global Emerging Markets, UBS Global Wealth Management.
IT is an indication that the UAE’s diversification and fiscal surpluses show a great ability to adapt to any global challenges.
Bolliger said that the country’s non-oil sector is heading towards sustainable growth, driven by a booming tourism and real estate sectors, increased government spending on capital projects, and strong inflows of foreign direct investment (FDI).
UAE economy forecast
He noted that the UAE’s real estate sector is expanding, with residential sales up by 60 per cent and an increase in mortgage applications thanks to low interest rates.
The easing of visa procedures and business ownership laws has boosted the influx of businesses and tenants, supporting investment in commercial property in Dubai and Abu Dhabi, he said, adding that the construction sector remains one of the main drivers of the economy, supported by the government’s continued investment in infrastructure projects.
Bolliger noted that the country’s tourism sector is also experiencing significant growth, and that Dubai’s tourism sector has recovered to pre-pandemic levels, with continued growth in international visitor numbers since the beginning of the year.
He said: “Oil GDP is expected to grow by 4.2 per cent in 2025, and the UAE economy will continue its growth momentum and maintain its positive trajectory in the coming years.”
The International Monetary Fund (IMF) recently maintained its forecast for the UAE’s gross domestic product (GDP) to grow by 4 per cent in 2024, rising to 5.1 per cent in 2025.
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