The United Arab Emirates is set to maintain its position as the fastest growing economy in the Gulf region in 2025, according to the latest outlook presented by the International Monetary Fund during Abu Dhabi Finance Week. The IMF highlighted the UAE’s strong non-oil activity, diversified investment strategies, and resilient financial sector as key drivers of its projected growth.
Strong Outlook for Non-Oil Growth
The IMF reported that the UAE continues to outperform its regional peers due to its expanding non-oil sectors. Tourism, technology, manufacturing, and logistics have all shown impressive performance throughout 2024 and are expected to continue this momentum into 2025. The country’s ongoing reforms, business friendly environment, and proactive economic policies were identified as major factors behind its sustained growth.
Impact of Strategic Investments
The UAE’s strategic focus on innovation, renewable energy, and advanced industries has also contributed significantly to its positive outlook. Large scale investments in artificial intelligence, clean energy, and digital infrastructure are helping to position the country as a leading global hub for future focused industries. The IMF highlighted these initiatives as evidence of the UAE’s successful long term economic diversification strategy.
Regional Comparison
While other Gulf economies are expected to grow at a stable pace, the UAE remains ahead due to its broader economic base and reduced reliance on oil revenues. The country’s ability to attract global companies, entrepreneurs, and financial institutions has created an ecosystem that supports continuous expansion even during periods of global uncertainty.
Confidence in Financial Stability
During Abu Dhabi Finance Week, IMF representatives praised the UAE’s strong financial systems, sound regulatory frameworks, and stable banking sector. These factors have provided a solid foundation for economic resilience and have supported the country in navigating global headwinds more effectively than many other economies.
Looking Ahead
The IMF expects the UAE’s economic trajectory to remain positive, supported by sustained non-oil growth, strategic reforms, and continued investment inflows. As global markets evolve, the country is projected to strengthen its role as a leading financial, trade, and innovation hub in the Middle East.