As highlighted in the World Bank’s latest report, the UAE is set for sustained economic growth. The country’s GDP is projected to reach 3.3% in 2024 and further accelerate to 4.1% in 2025 and 2026.

This growth is driven by a strong non-oil sector, which has expanded by 4.1% this year. Key contributors to this sector’s success include tourism, real estate, construction, and manufacturing.

In addition, a gradual increase in oil production is anticipated to support the economy, with oil output expected to grow by 1.2% in 2024.

Inflation in the UAE averaged 2.3% in the first half of 2024, with Dubai reflecting a similar trend at 3.9%. The World Bank predicts inflation will decrease slightly to 2.2% by the end of 2024 and increase to 2.1% in 2025-2026.

In contrast, Saudi Arabia’s economy is projected to remain resilient, with GDP expected to grow by 1.6% this year and accelerate to 4.9% in 2025.

Inflation in Saudi Arabia is anticipated to remain stable at 2.1% in 2024 and rise slightly to 2.3% in 2025. Both figures are below the Gulf Cooperation Council (GCC) average, forecasted at 2.2% in 2024 and 2.7% in 2025.

The report highlights the transformative impact of Saudi Arabia’s Vision 2030 initiative, noting an increase in female labor force participation from 22% in 2016 to 34% by the end of 2023. This aligns with the kingdom’s commitment to promoting gender equality and enhancing women’s involvement in the workforce.

Additionally, the World Bank forecasts a rebound in economic growth for the MENA region, which is projected to expand by 2.2% in 2024 and further accelerate to 3.8% in 2025. The GCC’s economic growth is expected to reach 1.9% in 2024 and rise to 4.2% in 2025.

Qatar, Bahrain, and Oman are projected to experience positive economic expansion, with Qatar and the UAE at the forefront. However, Kuwait is expected to face a slight economic contraction this year before rebounding in 2025.

While the region’s oil exporters anticipate strong growth, the World Bank has warned that ongoing conflicts and uncertainties remain significant challenges to sustainable development. The organization emphasizes that peace and stability are crucial for the region’s long-term prosperity.