Economic outlook for the UAE: Oxford Economics predicts that the country’s economy will grow at an even quicker clip than previously expected to 4.8% by 2025 as non-oil sectors continue to perform well. As and sampled learn from Scott Livermore, Chief Economist and Managing Director of Oxford Economics Middle East, non-oil economy in UAE is projected to rise by 4.6% year-on-year in 2024 driven by increases in travel and tourism.
When talking to the Emirates News Agency (WAM), Livermore pointed to DXBs unprecedented visitor numbers and traffic as well as tourism as the main drivers of the growth with the sector tipped to grow more than 20% in 2024 and carry on with double digit growth in the following years.
The incontestable strength remains for the UAE economy the issues such as the level of interest rates which permanently remains higher than the suggested one. Livermore credited this for considerable governmental manoeuvrers and evolutions, such as the investment projects under ‘We the UAE 2031’ and Dubai’s D33 pearl economic plan. By sunning these initiatives, along with the confidence gaining by the foreign investor in the UAE, this country has witnessed growth and diversification.
Policies like 100% foreign ownership onshore firms and less business incorporation costs have ensured that the UAE is increasingly headed towards becoming a favorite investment destination for international investors. These measures have also influenced population and lifted up the real estate and made the country right now choice for business and investment.
In the future, Livermore for sees the growth rate of global economy to settle to 2.7% in both 2024 and 2025. He also expects that the geopolitical tensions reducing as the US Federal Reserve monetary policy is expected to turn dovish with interest rate cut expected by the end of 2024 easing geopolitical pressure on the global economy.
