UAE Economic Outlook
A diversified Gulf economy with global influence:
The UAE has one of the most diversified economies in the Gulf, with a strong focus on trade, tourism, and financial services alongside its oil and gas sector. Dubai serves as a global hub for commerce, logistics, and real estate, while Abu Dhabi remains the country’s energy and investment powerhouse. This economic mix has allowed the UAE to remain resilient even amid oil price fluctuations.
Financial and tourism sectors driving growth:The UAE has positioned itself as a leading financial and investment destination, attracting multinational corporations and high-net-worth individuals with its business-friendly policies and low tax rates. The tourism sector, bolstered by attractions like the Burj Khalifa, Expo 2020, and luxury resorts, continues to contribute significantly to GDP. The country has also made strides in technology, AI, and renewable energy investments.
Labor market and policy reforms:The UAE has undertaken significant labor and visa reforms to attract skilled expatriates, including long-term residency programs such as the Golden Visa. However, reliance on foreign labor, particularly in construction and services, presents challenges in balancing local employment needs with economic growth. Additionally, government initiatives to increase Emirati workforce participation in the private sector have had mixed success.
UAE’s economic outlook:The UAE economy is expected to expand steadily, supported by strong trade, tourism, and financial services. Continued investment in green energy, technology, and innovation will help reduce reliance on hydrocarbons. However, maintaining global competitiveness in a shifting economic landscape and addressing long-term workforce sustainability remain key challenges.
The UAE's Macroeconomic Analysis:
Nominal GDP of USD 514 billion in 2023.
Nominal GDP of USD 514 billion in 2023.
Nominal GDP of USD 514 billion in 2023.
GDP per capita of USD 48,136 compared to the global average of USD 10,589.
GDP per capita of USD 48,136 compared to the global average of USD 10,589.
GDP per capita of USD 48,140 compared to the global average of USD 10,589.
Average real GDP growth of 3.2% over the last decade.
Average real GDP growth of 3.2% over the last decade.
Average real GDP growth of 3.2% over the last decade.
Sector Analysis
In 2022, services accounted for 47.7% of overall GDP, manufacturing 9.7%, other industrial activity 41.8%, and agriculture 0.8%. Looking at GDP by expenditure, private consumption accounted for 40.2% of GDP in 2020, government consumption 14.5%, fixed investment 22.8%, and net exports 22.5%.International trade
In 2022, manufactured products made up 9.7% of total merchandise exports, mineral fuels 73.1%, food 3.0%, ores and metals 4.5% and agricultural raw materials 0.1%, with other categories accounting for 9.6% of the total. In the same period, manufactured products made up 51.2% of total merchandise imports, mineral fuels 4.9%, food 5.6%, ores and metals 2.3% and agricultural raw materials 0.4%, with other goods accounting for 35.6% of the total. Total exports were worth USD 323.30 billion in 2021, while total imports were USD 244.20 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 3.2% in the decade to 2023. To read more about GDP growth in the UAE, go to our dedicated page.
Fiscal policy
UAE's fiscal surplus averaged 2.1% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 2.5% in the decade to 2023. For more information on UAE's unemployment click here.
Inflation
Inflation averaged 1.5% in the decade to 2023. Go to our UAE inflation page for extra insight.
Monetary Policy
The UAE monetary policy rate ended 2024 at 4.40%, up from 1.00% a decade earlier. See our UAE monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the dirham stayed on the same level vs the U.S. dollar. For more info on the dirham, click here.
Economic situation in The UAE
GDP growth so far this year has likely remained bright, beating the 2014–2023 average. The government continues to splurge on the non-oil sector, and the state-owned oil firm is pumping more crude than last year. That said, growth of non-oil business activity has eased, reaching a 44-month low in May as competition from Gulf neighbors heats up and U.S. tariffs stifle foreign demand. With regards to the oil sector, the picture is murkier: OPEC+ tripled the UAE’s quota for April–July in recent months, meaning oil output in June should be roughly 5% higher than at end-2024. However, non-OPEC sources say that the UAE has been exceeding its quota for months, with Bloomberg reporting that the country’s output barely budged in May and was nearly 10% above quota. In other news, the UAE and the U.S. signed a series of investment deals in May.UAE Economic Forecasts
Projections out to 2034.50 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 21 expert analysts.
Want to get insight on the economic outlook for UAE in the coming years? FocusEconomics collects projections out to 2034 on 50 economic indicators for UAE from a panel of 21 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the UAE economy. To download a sample report on the UAE's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.