The World Bank has confirmed that the United Arab Emirates (UAE) is maintaining a stable growth trajectory over the medium term, bolstered by a robust expansion in non-oil sectors. The findings were presented in a recent report titled “Labor and Women: Untapped Talents and Unachieved Growth.”
According to the report, the World Bank anticipates that the UAE’s economy will grow by 4.8% in 2025, representing an increase of 0.2 percentage points from previous estimates, with significant contributions expected from the financial services, construction, transport, and real estate sectors.
The report highlighted that Gulf countries are leading the regional growth momentum, with the UAE at the forefront. Growth projections for Bahrain stand at 3.5%, Saudi Arabia at 3.2%, Oman at 3.1%, Qatar at 2.8%, and Kuwait at 2.3%.
Additionally, the World Bank raised its growth forecast for the economies of the Middle East and North Africa (MENA) region to 2.8% for 2025, a slight increase from earlier predictions made in June. This growth is attributed to the gradual reversal of oil supply cuts by the OPEC+ alliance and strong non-oil activity in the Gulf states, providing a dual boost to regional economies.
The report noted that economic activity in the MENA region is expected to continue improving through 2026, achieving a growth rate of about 3.3%. However, this forecast reflects a decrease of 0.4 percentage points compared to mid-year projections, which had also seen a similar reduction in expectations.
Furthermore, the report mentioned OPEC+’s ongoing efforts to return halted supplies to the market, aiming to regain its market share after years of production cuts. The alliance recently agreed to an additional increase in oil production by 137,000 barrels per day starting in November, continuing the process of reinstating a total of 1.65 million barrels per day into the market.