ABU DHABI: Roberta Gatti, Chief Economist of the Middle East and North Africa (MENA) region at the World Bank, has expressed a strong confidence in the continued growth of the United Arab Emirates (UAE) economy over the upcoming years.
Speaking at the announcement of a partnership between the World Bank Group and the Abu Dhabi Global Market Academy aimed at enhancing financial literacy and sustainable development, Gatti emphasised the pivotal role of the UAE as a regional hub for trade, business, and travel.
Gatti projects the UAE’s GDP to increase by an impressive 3.4 per cent in 2024. The optimistic outlook is underpinned by continued fiscal and monetary surpluses anticipated in the medium term, largely attributed to the nation’s ongoing efforts in economic diversification and diminished reliance on oil revenues.
Rosy outlook
Notably, this reflects a broader trend within the region, where the average growth for MENA is expected to reach 2.2 per cent in 2024, a modest improvement from last year’s figure of 1.8 per cent.
The robust performance of Gulf Cooperation Council (GCC) economies is a crucial factor contributing to this anticipated growth. According to Gatti, GCC economies are poised for a notable recovery, with growth rates expected to reach 1.9 per cent in 2024, a significant increase from the 0.5 per cent seen in 2023.
“The expansion of the non-oil sector in most GCC countries is instrumental in driving this momentum. Furthermore, projections indicate that GCC growth could accelerate to 4.2 per cent in 2025, with developing oil-exporting and oil-importing nations expected to grow at 3.3 per cent and 3.5 per cent, respectively, during the same period.”
In addition to these economic forecasts, Gatti highlighted the essential role of women’s economic participation in promoting prosperity within the MENA region. She pointed out that closing the gender employment gap could potentially boost the region’s GDP per capita by an astonishing 51 per cent, illustrating the substantial impact of inclusivity on economic growth.
