The UAE's economy will continue to remain strong in the coming years, thanks to its focus on economic diversification, despite facing numerous challenges such as heightened tensions in the Middle East and declining oil prices, according to analysts.
Oxford Economics forecasts the UAE's gross domestic product to grow by 3.7 per cent this year before rebounding to 5 per cent next year, slightly below the International Monetary Fund's 2025 growth forecast of 5.1 per cent.
However, tensions because of the war in Gaza could weigh on the UAE's non-oil growth through a potential decline in tourism and investment, Scott Livermore, Oxford Economics' chief economist for the Middle East and North Africa said.
“But I think that's kind of pushing the extreme and pushing the crisis quite a bit further than to where we have it now,” Mr Livermore told The National.
“If this kind of measured tit-for-tat continues and doesn't escalate, then I think the impact on growth in 2025 … shouldn't be significant, and shouldn't derail the robust, positive picture” for the UAE.
Mr Livermore however said the real estate market also faces a potential risk of oversupply. Dubai home values have risen for 17 consecutive quarters and are up 20 per cent on an annual basis in the third quarter, according to a report by property consultancy Cushman & Wakefield Core this month.
“And while that risk persists, I think there's probably a number of reasons to be optimistic that we're not in a bubble,” he said, pointing to high demand, Dubai's relative affordability compared to other large cities and supply management.
Mr Livermore also noticed risks around lower oil revenue, although he said it is “not imposing a fiscal constraint”.
Despite these challenges, however, he considers the UAE's economic outlook as “robust and resilient”.
Owing to this positive outlook is the nation's diversification efforts. The UAE, like its partners in the Gulf, is in the middle of transforming its economy from a reliance on oil and gas to sustainable economic growth.
“It boils down to the diversification in the economy that's been achieved, but also the attractiveness that has been evident since Covid and seen as a safe haven, both regionally, but also internationally,” said Emilio Pera, KPMG Lower Gulf chief executive and senior partner.
One crucial economic driver is the UAE's thriving tourism industry.
Dubai welcomed 13.29 million international visitors from January to September this year, compared to 12.40 million at the same time last year, according to data from Dubai's Economy and Tourism.
About 85,000 people visited the Cop28 summit held in Dubai last year, held at the emirate's Expo City which opened in 2021.
“Dubai has become … a very popular destination for global and regional conferences, and that is attracting not only people to attend these but also has had a significant positive impact on tourism,” Mr Pera said.
Dubai's economy grew by 3.3 per cent in the second quarter this year driven by tourism and technology, the Dubai Media Office said this month.
Underscoring tourism's economic importance, Abu Dhabi's tourism body announced in April it would invest more than $10 billion in infrastructure as part of the country's efforts to welcome visitors.
Another major factor in the UAE's diversification strategy is its adoption of artificial intelligence. The UAE, which hopes to become a global hub for AI and semiconductors, has recently made major deals with leading players in the sector.
Abu Dhabi-based AI company G42 announced a partnership with Nvidia in September to help improve global weather forecasting, which followed a separate partnership G42 made with Nvidia's Earth-2. In April, Microsoft announced a $1.5 billion investment in G42 to help build on the UAE's initiatives as well as other countries.
KPMG anticipates the tech sector will contribute to 19.4 per cent of the UAE's GDP within the next decade, owing in part to the country's AI initiatives.
The firm's CEO Outlook survey, published in September, showed generative AI is a top investment priority for 52 per cent of UAE respondents, compared to 64 per cent globally.
“[The UAE is] definitely taking a more measured approach, taking a responsible approach to implementation of AI and generative AI in the market,” Mr Pera said, referring to data management and quality of data.
Chief executives in the UAE are also confident about their company's growth prospects, according to the KPMG survey. The survey found that 56 per cent of chief executives in the UAE anticipate a significant return” on their environmental, social, and governance investing within the next three to five years.
Accounting for this optimism is a business-friendly environment.
The UAE offers incentives aimed at increasing small and medium enterprises established in the country, while the creation of a retirement and golden visa has also enticed people to remain longer.
“It wasn't as attractive for people to see the UAE as a longer-term residential opportunity, and those visa changes have definitely enabled that,” Mr Pera said.
More on animal trafficking
Temple numbers
Expected completion: 2022
Height: 24 meters
Ground floor banquet hall: 370 square metres to accommodate about 750 people
Ground floor multipurpose hall: 92 square metres for up to 200 people
First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time
First floor terrace areas: 2,30 square metres
Temple will be spread over 6,900 square metres
Structure includes two basements, ground and first floor
if you go
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
The%20Crown%20season%205
%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EImelda%20Staunton%2C%20Jonathan%20Pryce%2C%20Lesley%20Manville%2C%20Jonny%20Lee%20Miller%2C%20Dominic%20West%2C%20Elizabeth%20Debicki%2C%20Salim%20Daw%20and%20Khalid%20Abdalla%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EWritten%20by%3A%20%3C%2Fstrong%3EPeter%20Morgan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%20stars%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Why seagrass matters
- Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
- Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
- Biodiversity: Support species like sea turtles, dugongs, and seabirds
- Coastal protection: Reduce erosion and improve water quality
More on animal trafficking
More on Quran memorisation:
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
KILLING OF QASSEM SULEIMANI
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
THE%20SPECS
%3Cp%3EBattery%3A%2060kW%20lithium-ion%20phosphate%3Cbr%3EPower%3A%20Up%20to%20201bhp%3Cbr%3E0%20to%20100kph%3A%207.3%20seconds%3Cbr%3ERange%3A%20418km%3Cbr%3EPrice%3A%20From%20Dh149%2C900%3Cbr%3EAvailable%3A%20Now%3C%2Fp%3E%0A
Killing of Qassem Suleimani
More from Neighbourhood Watch
Zayed Sustainability Prize
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
More from Neighbourhood Watch:
6 UNDERGROUND
Director: Michael Bay
Stars: Ryan Reynolds, Adria Arjona, Dave Franco
2.5 / 5 stars
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
West Indies v England ODI series:
West Indies squad: Jason Holder (c), Fabian Allen, Devendra Bishoo, Darren Bravo, Chris Gayle, Shimron Hetmyer, Shai Hope, Evin Lewis, Ashley Nurse, Keemo Paul, Nicholas Pooran, Rovman Powell, Kemar Roach, Oshane Thomas.
Fixtures:
1st ODI - February 20, Bridgetown
2nd ODI - February 22, Bridgetown
3rd ODI - February 25, St George's
4th ODI - February 27, St George's
5th ODI - March 2, Gros Islet
More from Neighbourhood Watch
More coverage from the Future Forum
Profile of Bitex UAE
Date of launch: November 2018
Founder: Monark Modi
Based: Business Bay, Dubai
Sector: Financial services
Size: Eight employees
Investors: Self-funded to date with $1m of personal savings
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
The years Ramadan fell in May
Killing of Qassem Suleimani
Zayed Sustainability Prize
The five pillars of Islam
Stormy seas
Weather warnings show that Storm Eunice is soon to make landfall. The videographer and I are scrambling to return to the other side of the Channel before it does. As we race to the port of Calais, I see miles of wire fencing topped with barbed wire all around it, a silent ‘Keep Out’ sign for those who, unlike us, aren’t lucky enough to have the right to move freely and safely across borders.
We set sail on a giant ferry whose length dwarfs the dinghies migrants use by nearly a 100 times. Despite the windy rain lashing at the portholes, we arrive safely in Dover; grateful but acutely aware of the miserable conditions the people we’ve left behind are in and of the privilege of choice.
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
The specs
Price, base / as tested Dh1,100,000 (est)
Engine 5.2-litre V10
Gearbox seven-speed dual clutch
Power 630bhp @ 8,000rpm
Torque 600Nm @ 6,500rpm
Fuel economy, combined 15.7L / 100km (est)
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Oppenheimer
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EChristopher%20Nolan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ECillian%20Murphy%2C%20Emily%20Blunt%2C%20Robert%20Downey%20Jr%2C%20Florence%20Pugh%2C%20Matt%20Damon%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E5%2F5%3Cbr%3E%3C%2Fp%3E%0A
The five pillars of Islam
How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
