In a recent economic update, the World Bank has revised its forecast for the United Arab Emirates (UAE) real GDP growth, signaling a positive outlook for the country’s economy. The international financial institution now expects the UAE’s real GDP to grow by 3.9% in 2024, a notable increase from the previous estimate of 3.7% made in January.

Furthermore, the UAE is on track to achieve a fiscal surplus of 5.1% by the end of this year, with expectations to maintain a strong surplus of 4.8% in the following year. This fiscal performance underscores the country’s robust financial management and economic resilience.

According to the World Bank, the growth rate in the Middle East and North Africa (MENA) is expected to reach 2.7% in 2024, a level last seen in the ten years prior to the global pandemic. According to the analysis, the MENA area is predicted to rise by 4.2% by 2025. Growth in the GCC economies—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates—is expected to pick up to 2.8% and 4.7% in 2024 and 2025, respectively. Increased oil output as a result of the gradual removal of oil production cuts and strong development in the non-oil sector as a result of diversification initiatives and reforms are the primary drivers of the growth uptick.