In 2025, the GCC economies are predicted to recover more robustly than anticipated, with the UAE set to spearhead the regional economic surge. According to economists, diversification, investment inflows, and better oil output are driving the regional economy forward despite concerns over global trade, recent flare-ups in regional conflicts, and rising tariffs.
Oxford Economics prepared the Institute of Chartered Accountants in England and Wales’ (ICAEW) most recent second-quarter Economic Insight report, which indicates a firming of economic fundamentals. The GCC’s revised overall growth projection for 2025 is 4.4%, up from the previous estimate of 4.0%.
The UAE is expected to expand its real GDP by 5.1% next year, which is far higher than the 2.4% worldwide average and reflects the nation’s ongoing progress in becoming a more diverse, innovation-driven economy.
Growth in the GCC’s oil industry has been recalculated to 4.5%, which reflects a quicker-than-expected reversal of Opec+ production restrictions. Although oil-dependent governments are forecast to face economic strain as average Brent crude prices linger around $67.3 per barrel in 2025, Qatar and the United Arab Emirates are predicted to retain budget surpluses. With strong non-oil growth and a stable investment climate, the UAE’s budgetary restraint stands out in the face of global uncertainty.
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