Economic growth in UAE and Saudi is expected to rebound

The economic growth of the UAE and Saudi will rebound to 2.8 % and 4.7 % in 2024 and 2025. It will led by robust GDP expansion in the GCC region, on the back of a projected oil production hike in the second half of 2024. According to the World Bank, this project is a recovery in global economic activity.  

In the Spring 2024 Gulf Economic Update, the World Bank said “The brightening regional prospects and rebound are not just because of the anticipated recovery in oil output, as Opec+ gradually relaxed the production of quotas in the second half of 2024. It also builds strong momentum in the non-oil economy which is expecting to robust pace over the medium term”. 

“ During a volatile global economic period, the commitment of the UAE and Saudi to diversify their economies highlights their strategic approach and sustainable development”, said the World Bank.

The World Bank is expecting Saudi Arabia’s real GDP to increase by 2.5 % and 5.9 % in 2025, driven by robust non-oil private activities. It will forecast the UAE’s real GDP growth to enhance to 3/9 % in 2024 and 4.1 % in the next year. 

In UAE, the oil output growth will reach 5.8% in 2024 and the non-oil output will be robust and continuously support economic growth, expanding at 3.2 % due to profitable performance in various industries such as travel and tourism, construction, manufacturing, and real estate sectors. 

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