The UAE’s non-oil economy is anticipated to expand by 4.7% in 2024, according to a report by Michael Bolliger, Chief Investment Officer of Global Emerging Markets at UBS Global Wealth Management. This growth highlights the UAE’s strategic economic diversification and its resilience in navigating global challenges through fiscal surpluses and adaptability.
Bolliger emphasized that the UAE’s non-oil sector is poised for sustainable growth, supported by booming tourism and real estate markets, increased government expenditure on capital projects, and robust inflows of foreign direct investment (FDI). These factors collectively strengthen the foundation for long-term economic stability.
Real Estate Sector as a Growth Engine
The UAE’s real estate market is witnessing remarkable expansion, with residential sales surging by 60% and a rise in mortgage applications fueled by favorable interest rates. Simplified visa processes and updated business ownership laws have further attracted businesses and tenants, boosting investment in commercial properties across Dubai and Abu Dhabi. The construction sector continues to be a pivotal contributor, driven by substantial government spending on infrastructure development.
Tourism Rebound to Pre-Pandemic Levels
Tourism in the UAE has made a strong recovery, with Dubai’s sector rebounding to pre-pandemic levels. International visitor numbers have steadily increased throughout the year, reinforcing tourism’s role as a cornerstone of economic growth.
Outlook for the Broader UAE Economy
Looking ahead, Bolliger predicts a 4.2% growth in oil GDP by 2025, underscoring the UAE’s ability to maintain its economic momentum. Similarly, the International Monetary Fund (IMF) has projected a 4% GDP growth rate for 2024, with expectations of further acceleration to 5.1% in 2025. These forecasts reflect the UAE’s commitment to sustaining a positive growth trajectory in the years to come.
Published On: 25 Nov 2024
Source: https://www.arabianbusiness.com/politics-economics/uae-non-oil-economy-to-rise-4-7-this-year-as-real-estate-booms-and-easy-visas-attract-businesses
