Tourists stroll along Dubai Creek. — Archive photo

In 2025, the UAE is expected to remain the fastest growing economy in the GCC region due to its ability to increase oil production sooner than other OPEC+ countries, according to a recent report.

According to KPMG’s CEO Outlook report, the UAE economy is expected to grow by 6.7 percent in 2025, a significant increase from this year’s 3.8 percent. This is probably mainly due to its diversification efforts and strong trade relations with neighboring countries. “The country’s positive economic outlook is supported by its thriving tourism sector and continued economic expansion,” KPMG noted.

Dubai has particularly seen an increase in international visitors, with 1.77 million in January and 1.9 million in February 2024. Additionally, hotel guest spending is expected to increase from $723.4 billion in 2023 to 758 .61 billion dollars in 2024, according to the Ministry of Economy and Tourism (DET).

“Our latest CEO Outlook report highlights the UAE’s remarkable economic resilience and growth potential, with strategic investments in diversification and industrial capabilities positioning the country as a leading hub for sustainable development and business innovation,” said Walter Palk, Partner, Head of Clients and Markets. , KPMG Bas-Golfe.

A strategic and secure environment

The UAE ranks 10th globally in the Soft Power Index 2023. This is the highest global ranking ever recorded, marking the fourth consecutive year as the top nation in the Middle East. The index assesses a country’s ability to influence others through cultural appeal, diplomatic relations, education, business and commerce, governance and digital engagement.

Beyond its strong economic influence, the United Arab Emirates promotes cultural exchanges, tourism and global connectivity. “Investments in aviation infrastructure by flagship airlines like Emirates and Etihad have extended the country’s geopolitical reach to more than 150 destinations around the world,” the report said.

The UAE is implementing various structural reforms and making strategic investments to diversify its economy and strengthen its industrial capabilities, KPMG noted. “Significant initiatives include Abu Dhabi’s $10 billion investment in tourism infrastructure, Adnoc Gas’s $13 billion plan to expand gas operations globally and locally over the next five years, and Dubai’s approval of a public-private partnership portfolio valued at $10.9 billion,” the report said. .

A view of the Global Village. Dubai has particularly seen an increase in international visitors, with 1.77 million in January and 1.9 million in February 2024. — File photo

The UAE also ranks highly in terms of safety and security, with low crime rates. Abu Dhabi tops Numbeo’s 2024 Safety Index as the world’s safest city, while Dubai also ranks fourth. According to the Gitnux Marketdata 2024 report, the UAE is recognized as the third safest country in the world. Furthermore, the UAE is a responsible global actor and continues to provide relief to countries in need, including medical and foreign aid to various development, humanitarian and charitable projects.

In the Global Competitiveness Report 2024, the UAE moved up three places to secure seventh place globally, overtaking countries including Norway, Iceland, Japan, Canada and Finland. Notable achievements include ranking first in the world in employment, Internet use and labor dispute resolution. The UAE also ranks second in terms of government policy adaptability, tourism revenue and bureaucratic efficiency, KPMG noted.

Favorite destination for millionaires

For the third year in a row, the UAE is expected to maintain its status as the world’s top destination for wealthy migrants, with around 6,700 people expected to move by the end of 2024, ahead of the United States, Singapore and Canada. According to Henley and Partners’ Private Wealth Migration Report 2024, the influx of millionaires from the UK will significantly increase the UAE’s millionaire population, contributing to foreign exchange reserves.

“These migrant millionaires, comprising approximately 20 percent of entrepreneurs and business founders, can boost the local economy by opening new businesses and providing new employment opportunities,” the KPMG report said.

Growth in the Gulf is also expected to accelerate as oil production increases from October 2024, while non-oil sectors continue to expand. The GCC region is expected to see economic growth rebound to 2.8 percent in 2024 and 4.7 percent in 2025, led by the UAE and Saudi Arabia. This growth is largely attributed to the expected increase in oil production in the second half of 2024 and a global economic recovery, as forecast by the World Bank. The region’s focus on diversifying its economies highlights its strategic approach to achieving resilience and sustainable development amid global volatility.

Somshankar Bandyopadhyay

Somshankar Bandyopadhyay is a senior editor with almost three decades of experience. Currently, he manages the economic section, ensuring that the economic and economic news of the day reaches its readers.