The future is bright: GCC growth outlook
- Gulf Cooperation Council (GCC) real GDP growth is projected to increase from 1.7 percent in 2024 to 3.2 percent in 2025 and 4.5 percent in 2026.
- Growth is driven by an easing of OPEC+ oil production cuts and robust expansion in non-oil sectors, including private consumption, investment, and economic diversification efforts.
- Government spending has been effective in stabilizing economies, particularly during downturns.
- The positive outlook is supported by a stable insurance sector and ongoing reforms to strengthen the private sector.
- Economic diversification efforts in GCC member states, such as Saudi Arabia and the UAE, aim to reduce reliance on hydrocarbon revenues.
GCC economies to grow 4.3pc by 2027: report
The pace of growth pf GCC economies will accelerate in the coming years to reach 4.3 percent by 2027, supported by expanding investments in tourism, renewable energy, manufacturing, and technology sectors, said a report.
The report by the Statistical Centre for the GCC (GCC-Stat) indicated that the economies recorded a balanced performance during 2024 despite global challenges, as the real GDP growth rate reached about 1.9 percent, driven by a 4.4 percent growth in non-oil sectors — reflecting progress in implementing economic transformation strategies.
The GCC-Stat report, “Economic Performance Outlook 2024 – Enabling fiscal sustainability and enhancing non-oil growth”, provides a comprehensive analytical overview of the macroeconomic performance of the GCC countries during 2024, including indicators of economic growth, inflation, public finance, public debt, fiscal sustainability as well as developments in financial markets, monetary and banking policy, foreign direct investment, foreign trade, and the Gulf labour market.
UAE inflation holds steady
Despite global economic turbulence and rising inflationary pressures in advanced economies, the UAE has maintained a stable inflation outlook, reflecting resilience and effective fiscal management. According to the International Monetary Fund’s (IMF) latest Regional Economic Outlook, the UAE’s inflation is projected to average 1.6 percent in 2025, slightly down from 1.7 percent in 2024, before inching up to 2.0 percent in 2026. This trajectory remains comfortably below the central bank’s target, signaling continued price stability.
According to Kamco Invest’s latest GCC Inflation Update, Dubai’s consumer price index (CPI) rose 2.9 percent year-on-year in September 2025, up from 2.4 percent in August. The Housing, Water, Electricity, and Gas category—Dubai’s most heavily weighted CPI component—was the primary driver, surging 5.8 percent year-on-year. Other contributors included Recreation and Culture, which rebounded sharply, and modest increases in Education and Food & Beverages.
UAE growth momentum continues with digital economy at forefront
Anthony O’Sullivan, Managing Partner of Ernst & Young (EY) in the UAE, affirmed that Dubai is today one of the most attractive cities in the world in terms of investment and economic opportunities.
O’Sullivan told the Emirates News Agency (WAM) on the sidelines of the Dubai Business Forum – USA, that Dubai stands out as a city designed to support the growth of companies and enable their expansion, while the UAE is among the fastest-growing economies in the region, further enhancing its attractiveness to investors and international institutions.
Regarding economic growth expectations for the UAE in 2025 and the most active sectors, he confirmed that growth will continue across key sectors, led by logistics, real estate and financial services.
He added that emerging areas within the digital economy, such as digital assets, artificial intelligence and data, are drawing increasing interest from global companies that view Dubai as an ideal base for expansion in these future-focused industries.
UAE foreign minister discusses economic cooperation
Sheikh Abdullah bin Zayed Al-Nahyan, deputy prime minister and minister of foreign affairs of the UAE, met with US Secretary of the Treasury Scott on Wednesday.
The meeting in New York City reviewed the strategic ties between the UAE and the US and explored ways to strengthen cooperation across finance, economy, and trade sectors, the Emirates News Agency reported.
Sheikh Abdullah highlighted the deepening strategic relations between the UAE and the US, emphasizing their shared commitment to fostering a diversified and sustainable economic future, according to WAM.
The two sides discussed developments in the Middle East and explored ways to enhance peace and stability, while also supporting global security.
Minister of State Saeed Al-Hajeri and the UAE Ambassador to the US Yousef Al-Otaiba also attended the meeting.
UAE makes first digital dirham transaction
The UAE government has conducted its first national transaction using the Digital Dirham.
The transaction was carried out by the Ministry of Finance and the Dubai Department of Finance, working closely with the Central Bank of the UAE, it was announced on Tuesday.
It is a key milestone in the nation’s campaign to embed next-generation financial technology across the public and private sectors.