The UAE’s economy is projected to accelerate and expand by 4.8% in 2025, according to Scott Livermore, ICAEW Economic Advisor and Chief Economist and Managing Director of Oxford Economics Middle East. Livermore credits this growth largely to the strong expansion of the non-oil economy, which is expected to increase by 4.6% year-on-year in 2024, as reported by the state news agency WAM.
He highlighted the strong performance of non-oil sectors, particularly travel and tourism, which continue to flourish. Dubai’s tourism figures and traffic through its airport, DXB, have reached record highs. Visitor numbers are anticipated to keep growing significantly, with over a 20% increase expected this year, followed by double-digit growth in the next.
Livermore acknowledged that the UAE has encountered certain challenges, such as substantially higher interest rates. However, the nation’s economy has managed to withstand these hurdles, bolstered by significant government backing as part of ongoing growth and diversification initiatives. He emphasised that investment activities are expected to remain strong as plans associated with “We the UAE 2031,” Dubai’s D33 strategy, and other initiatives are executed.
Additionally, Livermore indicated how the UAE has enhanced its appeal to foreign investors and talent. Policies such as the introduction of 100% foreign ownership of onshore companies and the reduction of business setup costs have spurred population growth and supported the real estate sector. Policymakers are also concentrating on fostering innovation in key emerging industries, including finance, creative sectors, and manufacturing.
Original article reference: Gulf News.
