The Central Bank of the UAE has improved its GDP growth forecast for 2024

The United Arab Emirates' Central Bank (CBUAE) has revised its economic growth forecasts for 2024, raising the expected GDP growth of the country to 4%, due to improvements in the non-oil sectors of the economy. UAE's GDP grew by 3.6% in 2023. The new forecast is for it to increase to 4% in 2024 and reach 6% by 2025.

The main growth drivers are non-oil sectors like tourism, transportation, financial services, construction, and communications, which continue to show steady growth. Their contribution to the GDP is expected to remain at 5.2% in 2024 and grow to 5.3% in 2025, thanks to the government's efforts to attract investment and support structural reforms.

The oil sector, despite slower growth in 2024, is expected to increase its performance by 7.7% in 2025, which will have a significant impact on the overall pace of economic growth. The country's budget in the first quarter of 2024 showed a surplus of 23.5 billion dirhams (US$6.4 billion), and budget revenues increased by 4.3% compared to the same period the previous year.

The introduction of corporate tax also played a significant role in improving financial indicators: the share of tax revenues in the total revenue volume grew to nearly 70% in the first quarter of 2024. Government spending grew by 5%, reflecting higher expenditures on wages, goods and services, as well as social benefits.