Dubai & UAE outlook 2025

We forecast that headline UAE GDP growth will strengthen to 5.0% this year as both the oil and non-oil sectors expand at the same pace. Dubai GDP growth forecast at 3.7%, up from an estimated 3.2% in 2024.
Easing oil production curbs will support the oil sector while expansionary budgets, major project works, and lower interest rates will give non-oil activity a boost a boost in 2025.
This year we forecast that price growth will slow to an average 2.8% y/y, with transport set to remain a drag on the headline measure but housing remaining the key driver.

Daniel Richards