Khaberni - A recent report from the World Bank indicated that the UAE is leading the Gulf Cooperation Council countries in economic growth rates for 2025, with an expected growth rate of approximately 4.8%, ahead of the Gulf average of 3.6%. This reflects the strength of the country's economic performance and enhances its position in the path of diversification and sustainable development.
Mazen Salhab, Senior Investment Consultant at "Baz Capital", explained that the outstanding performance of the UAE's economy in 2025, which aligns with the World Bank report predicting a stable growth of 4.8% exceeding other regional economies, reflects the correctness of the political decision in the UAE and the resulting economic measures and effective development policies led by the UAE government to enhance stability and sustainable growth.
He said, "It is clear that the growth in non-oil sectors such as real estate, transportation, and tourism has played a significant role as it reflected in an increase in individual wealth from the gross domestic product by more than 2%. This is very important as it reflects the appropriateness of wealth distribution without gaps between the rich and those with lower incomes, and this is credited to the wise UAE government."
Financial Policies
From her part, Professor Huda Al Khazimi, an advisor in economics and technology, said, "The reasons for the distinguished performance of the UAE economy are due to a mix of stable financial policies, expansion in non-oil sectors, and the easing of production constraints within the OPEC+ agreement. The gradual relaxation of these constraints allowed for an increase in oil exports, while the non-oil activity continued to achieve strong growth, and according to the UAE Central Bank's report for the first quarter of 2025, the non-oil sectors recorded growth of about 5.4%, driven by an increase in the real estate sectors 6.2%, financial services 5.8%, and transportation and logistics services 4.9%."
Enhancing Liquidity
She explained that the prudent financial and monetary policies contributed to enhancing liquidity and stabilizing prices; as the inflation rate in the country was only 2.3% in the first half of 2025, which is one of the lowest rates in the region, thus boosting investor confidence and leading to a 12% annual increase in foreign direct investment inflows.
Al Khazimi added, "This growth is expected to significantly improve public revenues and enhance the federal budget, alongside creating new job opportunities, especially in technology, advanced services, and renewable energy sectors. It will also contribute to expanding the production base and diversifying income sources, in line with the targets of the UAE Vision 2031."
She confirmed that the UAE has established its position as one of the most dynamic and competitive economies in the Arab world, thanks to a mix of strategic vision, economic governance, and openness to global investments.
International Confidence
Mohammed Al Hajeri, founder and CEO of "Culturize", highlighted that the World Bank report, which confirmed that the UAE's economy is the fastest-growing among the Gulf countries, reflects the outcome of a long-term vision based on economic diversification and innovation.
He said, "By investing in future sectors such as technology, renewable energy, and smart services, along with flexible legislation that attracts investments and facilitates business establishment, the state has been able to build a balanced economy that adapts to global transformations with confidence and flexibility. The national competencies and openness to global talents have contributed to enhancing innovation and transforming ideas into realistic projects."
He added, "We have begun to see the impact of this growth clearly reflected in the increasing international confidence in the UAE as a safe and stable destination, in creating quality opportunities for entrepreneurs and investors, and in enabling youth to enter the modern economic world with confidence and ambition. The UAE today is not only growing but also inspiring renewed growth based on humanity, making sustainability and leadership a permanent title for its journey."
