World Bank report forecasts UAE economy to grow by 4.8% in 2025

The latest edition of the Gulf Economic Update (GEU)- Fall 2025, issued on Friday by the World Bank, forecasts that the UAE economy will grow by 4.8 per cent.

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The report, titled “The Gulf’s Digital Transformation: A Powerful Engine for Economic Diversification,” confirmed that the UAE continues to achieve strong and broad-based growth, with balance across oil and non-oil sectors.

Real GDP is expected to grow by 4.8 per cent in 2025, and the country is a leader in diversifying its export base.

The report also projected economic growth of 3.8 per cent for Saudi Arabia, 3.5 per cent for Bahrain, 3.1 per cent for Oman, 2.8 per cent for Qatar, and 2.7 per cent for Kuwait.

The report highlights three main pillars: the evolution of economic diversification indicators over the past decade, tracking macroeconomic developments, and focusing on digital transformation.

The report examined the results of economic diversification efforts in GCC countries over the past decade, indicating moderate progress, with some promising indicators emerging in recent years.

It also highlighted the rapid digital transformation in the Gulf and the acceleration of artificial intelligence adoption, noting that all GCC countries boast advanced telecommunications networks, with more than 90 per cent 5G coverage and affordable high-speed internet.

Large investments in data centres and high-performance computing are strengthening Al readiness, with the UAE and Saudi Arabia emerging as leaders regionally and internationally.

This progress is supported by enabling ecosystems, including facilities and financing for projects and innovation, as well as government adoption of generative Al applications.