MENA Newswire News Desk – The UAE is expected to witness significant economic growth, with a 4.8% expansion projected by 2025, according to Oxford Economics. This growth will be driven primarily by the non-oil sector, buoyed by government investment and favorable policies that continue to attract foreign investors.
Scott Livermore, Chief Economist at Oxford Economics Middle East, shared the projections in a statement to the Emirates News Agency (WAM). He noted that the non-oil sector is expected to grow by 4.6% year-on-year in 2024, with industries like travel and tourism playing a significant role. Dubai’s visitor numbers and traffic at DXB Airport are anticipated to reach record levels, with a 20% increase this year and further double-digit growth expected next year.
Despite challenges such as rising interest rates, Livermore emphasized that the UAE economy remains resilient, supported by the government’s strong diversification and growth plans. Major investment activity is expected to continue through initiatives such as “We the UAE 2031” and Dubai’s D33 strategy, which are key drivers of future economic growth.
Livermore also pointed to reforms that enhance the UAE’s attractiveness to foreign investors, such as allowing 100% foreign ownership of onshore companies and lowering the costs of establishing businesses. These initiatives have contributed to population growth and bolstered the real estate market, adding to the nation’s economic strength.
The UAE is also focusing on developing new and emerging sectors, including finance, creative industries, and manufacturing, which will further reinforce its position as a global business hub.
On the subject of US Federal Reserve policies, Livermore said, “We expect the Fed to cut interest rates by 50 basis points by the end of 2024, and by a further 150 basis points by the end of 2025. However, these cuts could come sooner if the labor market deteriorates more quickly than expected.” Livermore concluded by forecasting global economic growth at 2.7% for both 2024 and 2025, dismissing concerns of a recession in the US and suggesting a more orderly slowdown in global growth.