Latest news with #NewModelofDevelopment
Khaleej Times
25-03-2025
- Business
- Khaleej Times
UAE non-oil economy set to grow 5.2% in 2025, real estate, tourism among major drivers
The UAE's non-oil economy is projected to grow 5.2 per cent this year, driven by tourism, real estate, finance and other sectors, according to an analysis by S&P Global Market Intelligence. 'Real estate will likely continue to grow and remain one of the key growth drivers in 2025. We haven't seen signals that would point to an imminent downturn of the market, which leads us to anticipate further growth of Dubai's and, to a lesser extent, UAE's real estate market in 2025,' Ralf Wiegert, head of Middle East and Northern Africa economics, S&P Global Market Intelligence, told Khaleej Times. Real estate has been one of the major non-oil drivers of UAE –especially Dubai– over the past four years, attracting billions of dirhams of investments every year. He noted that services, including tourism, real estate, financials, retail, and trade and transport will drive non-oil economic growth in the country this year. The growth rate is in line with the International Monetary Fund's (IMF) real GDP growth forecast of 5.1 per cent for 2025—the highest in the Gulf Cooperation Council (GCC) region. Kristalina Georgieva, managing director of IMF, has projected that digital innovation, with artificial intelligence (AI) technologies, is expected to raise UAE's GDP significantly by 2030. 'More R&D spending will further enhance productivity,' she added. She pointed out that reducing the state's footprint in the economy and strengthening governance can yield significant benefits for the Middle East and North African countries. 'For example, Saudi Arabia's regulatory improvements have fostered private sector investment, especially in the non-oil economy. The UAE's National Agenda for Entrepreneurship has supported a vibrant startup community, and Morocco's New Model of Development aims to spur markets by improving public sector governance,' she has said. Oil sector Wiegert said the oil sector will become a growth driver in 2025 given the adjustment to the UAE's oil export quota by Opec. Capital Economics said in a note that rises in oil output from Opec+ starting in April will gradually provide a boost to GDP growth in the Gulf states. 'But if oil prices slide further, governments will likely need to tighten fiscal policy further, weighing on non-oil GDP growth this year,' it said. Newswires reported that the Opec+ group will raise oil output for a second consecutive month in May. It is expected that the group will raise output by 135,000 barrels per day in May 2025.
Zawya
10-02-2025
- Business
- Zawya
MENA economies will surpass global growth in 2025 – IMF MD Kristalina Georgieva
Growth of economies in the MENA region will surpass global growth this year at 3.6%, but it will still be weaker than pre-pandemic, so countries must find ways to avoid a low-growth, high debt scenario, Kristalina Georgieva, managing director of the International Monetary Fund (IMF), said at the World Governments Summit in Dubai on Monday Global growth is set to hold at 3.3% this year and next year, and then slow to 3%, which is well below historical average, according to IMF. The MENA region will rebound to 3.6% growth driven by oil production recovery and easing of regional conflicts. 'Digitalised countries have substantially higher productivity than those that are less so, with some in the region the most developed in the world in this area,' Georgieva said. 'Digital innovation with AI Technologies is expected to raise the UAE's GDP significantly by 2030. More research and development spending will further enhance productivity.' Saudi Arabia is an example of a state reducing its footprint in the economy and strengthening governance with regulatory improvements, fostering private sector investment, especially in the non-oil economy, she said. The UAE's National Agenda for Entrepreneurship has supported a vibrant start-up economy and Morocco's New Model of Development aims to spur markets by improving public sector governance, she added. However, while policymakers around the world have succeeded in taming inflation, it is beginning to pick up again in some countries, which could lead to divergence in interest rates and higher borrowing costs for emerging markets and developing economies. Meanwhile, global public debt is set to hit 100% of GDP by 2030 with many MENA countries facing debt levels of 70% of GDP, which risks them becoming trapped in the low-growth, high-debt scenario, Georgieva said. The region must therefore find ways to create jobs, enhance social safety nets and build resilience to more frequent national disasters and support economic diversification, she added. Governments globally are shifting priorities, with the USA being clear it will take action in trade, tax and spending, deregulation and digital assets, she said, meaning, recipes of the past may no longer provide the path to prosperity.
