Owed to its ongoing efforts to diversify its economy and pursue strong trade relations with neighboring countries, the UAE’s economy is expected to rise to 6.7% in 2025, up from 3.8% this year.

Speaking at their Emerging Markets Key Themes 2024 webinar, John Ashbourne, BMI’s Global Economist for Emerging Markets, expressed the research firm’s optimism about the UAE, asserting that the Gulf state will emerge as one of the fastest-growing economies in the region by 2025. This can be attributed to the country’s robust tourism sector, diversified economy, and strong trade relations.

The webinar offered insights into key themes affecting emerging markets in mid-2024, focusing on the impact of political risk in the Middle East and Europe, monetary policy in the US, and slowing economic growth in the People’s Republic of China.

Oil prices are expected to remain at around $82 to $84 per barrel on average during 2024 and 2025. Oil demand in developed markets is anticipated to peak in 2025 or 2026 and then gradually decline. This trend is projected to occur by 2034 or 2035 across various regions worldwide, Ashbourne added.

However, despite these optimistic outlooks, he stated that growth will not return to the levels expected before the pandemic.