IMF Forecasts Robust 5.1% Real GDP Growth for UAE in 2025, Underscoring Economic Momentum
The International Monetary Fund (IMF) has issued a positive outlook for the United Arab Emirates’ economy, projecting a strong real Gross Domestic Product (GDP) growth of 5.1% for the year 2025. This forecast, released as part of the IMF’s latest regional economic outlook, highlights the continued economic momentum within the Emirates, driven by a combination of strong non-oil sector performance and supportive government policies.
The IMF’s projection of a 5.1% expansion in real GDP for the UAE in 2025 underscores the nation’s resilience and its ability to navigate global economic headwinds. This growth forecast positions the UAE favorably compared to many other economies worldwide, signaling a period of sustained economic activity and expansion.
Several factors are expected to contribute to this robust growth. The IMF’s assessment likely takes into account the UAE’s ongoing success in diversifying its economy away from hydrocarbons. The significant growth in non-oil trade, as evidenced by recent figures exceeding AED 2.0 trillion, demonstrates the increasing contribution of sectors such as tourism, trade, manufacturing, and real estate to the nation’s overall economic output.
Furthermore, the UAE’s proactive government initiatives aimed at attracting foreign investment, fostering innovation, and developing key non-oil sectors are expected to continue to bear fruit in 2025. Strategic investments in infrastructure, technology, and human capital are creating a conducive environment for business growth and economic diversification.
“The IMF’s projected 5.1% real GDP growth for the UAE in 2025 is a strong endorsement of the country’s economic policies and its diversification agenda,” commented Dr. Nasser Al-Saidi, a prominent economist and former government advisor. “It reflects the positive impact of the UAE’s efforts to create a more resilient and sustainable economic model.“
The forecast also likely considers the UAE’s stable macroeconomic environment, supported by prudent fiscal management and a well-capitalized financial sector. The Central Bank of the UAE’s commitment to price stability, as reflected in its maintained inflation forecast, further contributes to a favorable economic outlook.
While the global economic landscape remains subject to various uncertainties, the IMF’s positive projection for the UAE in 2025 offers a reassuring perspective. It suggests that the Emirates is well-positioned to capitalize on its diversification efforts and maintain a strong growth trajectory in the coming year. This forecast will likely bolster investor confidence and further solidify the UAE’s standing as a leading economic hub in the Middle East and globally.
The IMF’s assessment serves as a benchmark for economic performance and will be closely watched by businesses, investors, and policymakers both within the UAE and internationally. The projected 5.1% real GDP growth for 2025 underscores the UAE’s economic dynamism and its continued progress towards a more diversified and sustainable future.
