While other GCC nations face budgetary difficulties in 2025 due to reduced oil output, the UAE stands out as the only state predicted to attain a balanced budget, demonstrating its economic resilience and strategic diversification.
Analysts say the UAE is positioned as a regional leader because of its sound fiscal management and strong non-oil industries, while other GCC countries struggle with growing deficits due to reduced oil output and unstable crude prices.
This stability, which is supported by significant investments in infrastructure, social development, and economic diversification, strengthens the UAE’s position as a major international financial centre and increases trust in its economic prospects.
According to a Kamco Invest analysis, the GCC’s total planned spending for 2025 is projected to be $545.3 billion, down slightly from $554.9 billion in 2024. However, budgeted revenues are expected to drop 3.1% to $488.4 billion from $504.1 billion the previous year, mostly due to GCC OPEC members cutting back on their oil output. As a result, the projected regional budget deficit has increased from $50.8 billion in 2024 to $56.9 billion.
Although Saudi Arabia, the United Arab Emirates, and Bahrain have not revealed their precise oil price projections, most GCC budgets use the cautious assumption that crude oil prices will be $60 per barrel.
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