UAE Revises Up GDP Forecasts to 4.9% in 2025

The United Arab Emirates' economy is now expected to grow 4.9% in 2025, up from earlier forecasts of 4.4%, supported by higher oil production and robust growth in the non-hydrocarbon sector. In its quarterly update, the Central Bank said the hydrocarbon sector is projected to expand by 5.8% in 2025 and 6.5% in 2026, as oil production increases in line with OPEC+ quotas. Meanwhile, non-hydrocarbon GDP is forecast to grow by 4.5% in 2025 and 4.8% in 2026. These sectors may benefit from the indirect effects of stronger hydrocarbon growth, including increased investment, higher government spending, and improved economic confidence. In the first quarter, UAE GDP advanced 3.9% year-on-year, driven by non-hydrocarbon growth of 5.3%. The manufacturing, financial services, construction, and real estate sectors led this expansion.