The International Monetary Fund raises the growth forecast for the Abu Dhabi economy to 5%.

Mustafa Abdel Azim (Abu Dhabi)

The International Monetary Fund expects Abu Dhabi’s real GDP to grow in the current and next years at a rate of up to 5%, an increase of between 1.5% and 0.8% from the published forecast. last April, estimated at 3.5% for 2024 and 4.2% for 2025.
An official spokesman for the International Monetary Fund for the Middle East and North Africa region said, “Abu Dhabi’s economy is the main engine of growth in the gross domestic product of the UAE economy, which is expected to reach around 4 % this year before it rises. to 5.1% next year, while it is expected to register The gross domestic product of the Emirate of Dubai grew at a rate of 3.5% for the current and next year.
In response to a question from Al-Ittihad, the speaker influenced the strong growth expected in the economy of Abu Dhabi in the current and next years, according to the Fund’s team, has expanded strong and fast in the hydrocarbon industries, the building and construction sector. , and financial activities.
The International Monetary Fund’s forecasts for the Abu Dhabi economy show the success of the emirate’s economic diversification strategy and the rapid growth of non-oil economic activity.
The expectations of the Fund are in line with the latest preliminary estimates issued by the Statistics Center – Abu Dhabi, which showed a growth in the gross domestic product of the Emirate of Abu Dhabi by 4.1% in the second quarter of 2024, compared to the same time in 2023.
According to preliminary estimates published by the Statistics Center – Abu Dhabi, the gross domestic product of the Emirate of Abu Dhabi continued to record growth in total value, exceeding 297 billion dirhams in the second quarter of 2024, which stimulated growth or -emirate the emirate. – the oil economy in the first half of 2024 with 5.7%.
Preliminary estimates also show growth in all non-oil activities, which led to an increase in non-oil GDP by 6.6%, recording the highest quarterly value at 164.2 billion dirhams, and an increase in contribution non-oil economic activity to the emirate’s economy to over 55.2%, which is the highest percentage since the last quarter of 2014.

Economy of the Emirates
The International Monetary Fund had raised its forecast for real GDP growth in the United Arab Emirates in the next year 2025 to 5.1%, compared to the previous forecast of 4.2%, while They expect the growth rate for this year to be stable at 4.0%.
The Fund’s data contained in the October edition of the “World Economic Outlook” report showed that the expected growth rate of the UAE economy next year, at 5.1%, is the fastest and highest among economies the Middle East region, with the support of The economy is expected to reach a positive growth rate of around 4.3% on average in the period from 2025 to 2029.
The International Monetary Fund expected the inflation rate in the UAE to decrease from estimates of around 2.3% this year to 2.1% next year, suggesting that the inflation rate will remain around 2.1% on average until 2029.
The Fund expected that the public finance balance surplus would reach 8.8% of the gross domestic product for this year and that it would reach 8.2% next year.

Extra strong
In the Fiscal Monitor report, the International Monetary Fund expected the UAE’s first general budget to reach a strong surplus this year equal to 5.5% of GDP. averaging over 4.5% of GDP per year.
The Fund recorded good prospects for public finance in the UAE for the next five years, in terms of budget, revenue, spending, public debt management, and various financial indicators.