UAE Central Bank Maintains 4% GDP Growth for 2024

UAE, 24 December, 2024 :  The UAE Central Bank has maintained its real GDP growth forecast for 2024 at 4.0%, with expectations for an acceleration to 4.5% in 2025 and 5.5% in 2026. Growth is expected to be driven by sectors such as tourism, transportation, financial services, construction, real estate, and communications.

Non-oil GDP growth surged to 4.8% in Q2 2024, up from 4.0% in Q1, fueled by manufacturing, trade, transportation, and real estate. The non-oil sector is projected to continue strong growth, with a forecasted 4.9% increase in 2024.

The UAE’s non-oil trade exceeded AED 1.3 trillion in H1 2024, reflecting successful economic diversification and strengthened trade partnerships. Oil production averaged 2.9 million barrels per day, with a 1.3% growth expected for 2024.

The fiscal sector also showed strong performance, with government revenue rising 6.9% year-on-year to AED 263.9 billion, and a fiscal surplus of AED 65.7 billion, a 38.8% increase from 2023.

The UAE's non-oil private sector remains optimistic, with a PMI of 54.1 in October 2024, indicating continued business confidence. In Dubai, the PMI stood at 53.2, signaling growth within the emirate’s private sector.

Employee wages grew by 7.2% year-on-year in September 2024, further supporting strong domestic consumption and economic growth.