CBUAE projects UAE’s real GDP growth to reach 6.2% in 2025
https://wam.ae/en/article/b3rzqry-cbuae-projects-uae%E2%80%99s-real-gdp-growth-reach-62
This forecast is driven by robust foreign trade and a balanced growth between the hydrocarbon and non-hydrocarbon sectors. The non-hydrocarbon GDP is expected to grow by 5.4% in 2024 and 5.3% in 2025, while the hydrocarbon sector is projected to grow modestly by 0.3% in 2024, followed by a significant expansion of 8.4% in 2025.
In 2023, the UAE economy saw a 4.3% year-on-year growth in Q4, up from 2.5% in Q3, supported by accelerated non-hydrocarbon growth and improved performance in the hydrocarbon sector. Despite a 13.9% decline in total revenue to AED 526.1 billion, the fiscal balance remained positive at AED 85.6 billion, or 4.5% of GDP, with government expenditure increasing by 3.1% to AED 440.5 billion.
The UAE's non-oil private sector indicators are positive, with a Purchasing Managers' Index (PMI) of 55.3 in April 2024, reflecting strong business optimism and robust demand. Dubai's non-oil private sector also performed well, recording a PMI of 55.1. Employment and wage growth are strong, with a 7.5% increase in the number of employees covered by the Wage Protection System and a 9.4% rise in average salaries year-on-year in April 2024.
Key sectors contributing to the non-oil GDP include real estate, tourism, hospitality, and transportation, representing about 30% of the non-oil GDP. Abu Dhabi's residential real estate market saw a 7.7% year-on-year increase in sales transactions from January to April 2024, driven mainly by a 24.9% rise in sales of ready units.
Dubai continues to be a leading international tourism hub, with an 83% hotel occupancy rate in Q1 2024 and a 2% year-on-year increase in total occupied room nights. The city welcomed 5.2 million international visitors in the first quarter of 2024, an 11% increase from the previous year. Dubai International Airport had its busiest quarter ever, with 23 million passengers, marking an 8.4% rise year-on-year.
Additionally, Abu Dhabi's Zayed International Airport experienced a 36% increase in passenger numbers in Q1 2024, handling over 6.8 million passengers, benefiting from the new terminal's advanced facilities.
Dubai is set to further enhance its status as a global travel hub with an AED 128 billion expansion project for Al Maktoum International Airport, aiming to become the largest airport worldwide, capable of handling up to 260 million passengers annually. This significant infrastructure investment underscores Dubai's strategic focus on expanding its capacity and connectivity in the global aviation and tourism sectors.