MENA Newswire News Desk: The UAE’s non-oil economy is projected to grow by 4.7% in 2024, according to Michael Bolliger, Chief Investment Officer for Global Emerging Markets at UBS Global Wealth Management. Bolliger attributed the robust growth forecast to the nation’s effective economic diversification, fiscal surpluses, and resilience in navigating global challenges.
Key drivers behind this growth include a booming tourism industry, a strong real estate market, increased government investment in infrastructure, and a rise in foreign direct investment (FDI). The UAE’s progressive policies, including eased visa regulations and updated business ownership laws, are enhancing its appeal to global investors, businesses, and skilled professionals.
The real estate sector has seen significant expansion, with residential property sales up by 60%, supported by favorable mortgage rates. Bolliger highlighted that these factors, along with a growing number of commercial tenants, have strengthened investment in property markets in Dubai and Abu Dhabi. Simultaneously, the construction sector remains a cornerstone of the economy, benefiting from sustained public spending on capital projects.
Tourism has also emerged as a major contributor to the UAE’s economic recovery and growth. Dubai’s tourism sector has returned to pre-pandemic levels, recording a consistent increase in international visitor numbers since the start of the year. This resurgence has solidified the UAE’s position as a global hub for travel and hospitality.
Looking beyond the non-oil sector, Bolliger remarked that oil GDP is anticipated to grow by 4.2% in 2025, underscoring the balanced trajectory of the UAE’s broader economy. This complements the International Monetary Fund’s (IMF) recent forecasts, which estimate an overall GDP growth rate of 4% for the UAE in 2024, with an acceleration to 5.1% in 2025.
The UAE’s commitment to strategic economic initiatives and infrastructure development continues to attract international investments and sustain its upward momentum. These factors collectively position the country as a leading economic player in the region, with long-term growth prospects that remain highly favorable.