UAE’s non-oil economy expected to grow 4.7% in 2024: UBS Global Wealth Management

Michael Bolliger, CIO Global Emerging Markets, UBS Global Wealth Management, confirmed that the UAE’s non-oil economy is expected to grow by 4.7% in 2024, indicating that the UAE’s diversification and fiscal surpluses show a great ability to adapt to any global challenges.

In a statement to the Emirates News Agency (WAM) on the sidelines of a media briefing held remotely, he added that the UAE’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).

He noted that the UAE’s real estate sector is expanding, with residential sales up by 60% 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 UAE’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.

“Oil GDP is expected to grow by 4.2% 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% in 2024, rising to 5.1% in 2025.

WAM