Latest news with #UAEeconomy
Khaleej Times
a day ago
- Business
- Khaleej Times
UAE's real GDP expected to expand at 4.8% this year
The UAE's real GDP growth is expected to grow at 4.8 per cent this year, following a 4.0 per cent expansion in 2024, driven by a pick-up in activity in the hydrocarbons sector, a leading financial institution said. According to a note from Emirates NBD Research, the growth in the hydrocarbons sector is based on adjusted baseline targets and a change of strategy from Opec+, which recently raised production quotas for its members. Oil sector growth is projected at 5.0 per cent, up from just short of 1.0 per cent last year. Emirates NBD anticipates a modest slowdown in non-oil growth to a still robust 4.7 per cent, from 5.0 per cent in 2024, with Abu Dhabi likely growing at a faster pace than Dubai once again. 'Transport and storage, construction, and financial services are likely to remain key growth drivers across the emirates. In 2026 we forecast GDP growth of 4.6 per cent,' Daniel Richards, Senior Economist at Emirates NBD, said. The UAE's current account surplus is expected equivalent to 8.1 per cent of GDP, down from 9.1 per cent last year. 'The modest fall is on the back of lower oil prices which we forecast at an average $68 per barrel in 2025, from $80 in 2024. As a result, we expect a pick-up in the current account balance to 9.0 per cent of GDP in 2026 as both oil production and global oil prices are likely to be higher,' Richards said. The UAE's fiscal surplus is expected to decline to 1.8 per cent of GDP in the UAE this year, down from 3.4 per cent in 2024, as lower oil prices constrain revenue. This will be the fifth straight year of surplus: since 2017 there has only been a deficit in 2020, in the midst of the Covid-19 pandemic. In Dubai, the government committed to an expansionary budget of Dh86.3 billion in 2025, marking a nine per cent expansion on the Dh79.1 bilion that was allocated for 2024, with the government projecting a surplus equivalent to 4 per cent of GDP. Dubai's monthly CPI inflation is expected to average around 2.5 per cent year on year this year, which would mark the slowest pace of price growth since 2021. 'Annual inflation over the first five months of the year has averaged 2.8 per cent, moderately higher than our full-year forecast. However, most components of the basket continue to show only moderate price growth and we anticipate that inflation should be maintained around current levels through the rest of the year, a slowdown from the 3.2 per cent pace seen at the start of 2025,' Richards said.
The National
a day ago
- Business
- The National
UAE foreign direct investment hit $45bn in 2024 on economic diversification boost
The UAE, the Arab world's second-largest economy, received Dh167 billion ($45.5 billion) in foreign direct investment last year, and the country has its sight firmly set on achieving its aggregate FDI target of Dh1.3 trillion by 2031. The 48 per cent annual FDI rise in 2024 is a 'international vote of confidence in the UAE's economy', Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said on X on Thursday, citing a report issued by the UN Conference on Trade and Development. 'The UAE accounted for 37 per cent of the total foreign investment flows in the region … (Out of every $100 that comes as foreign investment to the region, $37 of it goes to the UAE),' he said. The country, also ranked second globally in the number of new foreign direct investment projects, after the US, he added. Last November, the UAE launched a strategy to double its cumulative FDI to Dh1.3 trillion in the next six years as it continues to push to diversify its economy. The investment strategy launched at the annual meetings of the UAE government in Abu Dhabi, also aims to triple the cumulative FDI balance to Dh2.2 trillion by 2031, and targets key sectors such as advanced manufacturing and renewable energy. 'We have a clear development agenda drawn up by Mohammed bin Zayed. We have a unified team committed to his instructions, and we have a people united around their leadership. This is the secret to our success,' Sheikh Mohammed said. 'Our message from the UAE: development is the key to stability … and the economy is the most important policy.'
Khaleej Times
a day ago
- Business
- Khaleej Times
UAE: Google helped create 30,000 jobs in 2024, added Dh21.8 billion to economy
Google contributed an estimated Dh21.8 billion to the UAE economy in 2024 through its multiple apps and channels that residents in the country use in their daily lives. According to the Economic Impact Report released by the technology giant, the Android and Google Play app ecosystem supported the creation of 30,000 jobs in the UAE last year. The report revealed that Google's Search and Ads alone helped provide Dh20.2 billion in economic activity for businesses in the UAE. Conducted in English and Arabic in March 2025 by the Public First research agency, the survey covered 1,110 online adults and 389 business leaders based in the UAE. 'The UAE is reimagining what a modern economy can look like and leveraging technology in really interesting and exciting ways. This is particularly true when it comes to AI. We estimate that generative AI could grow the economy by almost Dh300 billion and drive genomic diversification by nearly 30 per cent. "We estimate that AI tools would help increase productivity across the UAE by 15 per cent – equivalent to 310 hours per offer, reallocated higher value tasks each year,' said Amy Price, director and head of technology, media and telecom prices at Public First. 'Through strategic investments, local partnerships, and our AI-powered tools, we're bringing substantial economic value and empowering individuals, businesses, and communities in the UAE,' said Anthony Nakache, managing director for Google in the Middle East and North Africa. The study found that Dh455 million of revenue was generated by the Android App Economy for UAE-based developers in 2024, as half of adults in the Emirates say Google Search is essential to their daily lives while nearly 9 out of 10 – 89 per cent – UAE residents reported that Google Maps and/or Waze were very useful when they were avoiding getting lost. It added that an estimated 7.6 per cent million adults in the UAE used Google Search to learn a new digital skill. Nearly 9 out of 10 – 90 per cent – of adults in the UAE said that the ability to make contactless payments on mobile devices through services like GPay or GWallet makes their lives easier. Interestingly, the Economic Impact Report found that consumers in the UAE, on average, get Dh683 a month in benefits created by Google services. Google products – Search, Play, Maps, YouTube and Google Ads – are among the most popular apps and are widely used in the UAE and globally. The technology giant said more than 430,000 individuals in the UAE had been trained in digital and AI skills through Google's key skilling initiative, "Maharat Min Google", initiative since 2018.
Khaleej Times
2 days ago
- Business
- Khaleej Times
UAE economic growth likely to hit 5% this year, expert says
The UAE's prudent economic policies and diversification efforts are likely to push GDP growth rates to five per cent, an expert said. 'The UAE's 'connector economy' role is the main factor to its success, underpinning trade and capital flows into the country. Booming construction and real estate sector as well as push for higher productivity through investments into IT and specifically AI infrastructure will support strong growth momentum,' Yerlan Syzdykov, Global Head of Emerging Markets at Amundi, told Khaleej Times in an interview. The World Bank last week raised its forecast for the UAE's economic growth to 4.6 per cent this year and 4.9 per cent next year, citing robust expansion in both hydrocarbon and non-oil sectors. Syzdykov sees a long-term prospects for growth in GCC countries as very promising, booming consumption coupled with increasing participation rate in most of GCC economies. 'In the short term, we see strong growth momentum, underpinning our forecasts of 3.5 per cent for 2025 for the region at large,' he added. The tariff war has mostly had an indirect effect on GCC economies, mainly through the impact on oil prices driven by negative effect of trade wars on global growth and demand for energy. 'At the same time, the associated increase in capital and trade flows within Global South fuels further growth of 'connector economies' such as UAE,' Syzdykov said. The budget assumptions for price of oil vary across different GCC countries, and the most optimistic forecasts behind government revenues come from Kuwait, Saudi Arabia and Bahrain. 'In case we see slower global growth and increased supply of oil, investors will look for significant fiscal adjustment that will be needed to balance the budgets. The two least affected countries with most conservative oil price in their budgets are UAE and Qatar,' Syzdykov said. Oil markets remain in a soft stage as global tariff wars fuel uncertainties over the demand outlook. 'In case we see softer oil prices, the governments [in the GCC] will need to diversify the sources of funding, which will incentivise them to continue pushing for more IPOs,' Syzdykov said.
Arab News
4 days ago
- Business
- Arab News
UAE to hit $1tn non-oil trade target 4 years ahead of schedule, says official
RIYADH: The UAE is set to achieve its 4 trillion dirhams ($1.089 trillion) target for non-oil foreign trade within two years and ahead of the original 2031 goal, according to the country's vice president. In a post on X, Sheikh Mohammed bin Rashid Al-Maktoum highlighted the country's rapid economic progress, stating that key indicators have surpassed global benchmarks. This acceleration in trade is mirrored in other areas of the economy. The UAE reported a 4 percent growth in gross domestic product in 2024, with non-oil sectors contributing 75.5 percent of the overall output as diversification efforts gained momentum. 'Our non-oil foreign trade increased by 18.6 percent year-on-year in the first quarter of this year (global average 2-3 percent) — Its volume in the first quarter of this year amounted to 835 billion dirhams. Our non-oil exports grew exceptionally by 41 percent on an annual basis,' Al-Maktoum stated. He continued: 'Our goal is to achieve non-oil foreign trade for the UAE amounting to 4 trillion dirhams by 2031 ... We will reach it within two years ... (four years before the scheduled date).' Al-Maktoum, who also serves as prime minister, noted that non-oil exports recorded an exceptional year-on-year growth of 41 percent, signaling the country's strengthening role in international trade. He further noted that the non-oil sector now contributes 75.5 percent to the national economy, highlighting the country's successful diversification strategy. 'These are new development indicators for the UAE,' he said, reflecting on the resilience and dynamism of the country's economy despite global challenges. Al-Maktoum credited UAE President Sheikh Mohamed bin Zayed Al-Nahyan for leading the country's transformative economic journey, which he described as achieving 'exceptional milestones in the history of the UAE.'
