Emirati economy to grow by 4.8% in 2025

The economy of United Arab Emirates (UAE) continues to consolidate itself as one of the most dynamic in the Gulf. According to the latest Gulf Economic Update (GEU) — Fall 2025 Of World Bank, UAE will record growth of 4.8% in 2025, driven by its diversification strategy and by a solid digital transformation.

Balanced economic growth between oil and non-oil sectors

The report, entitled “The digital transformation of the Gulf: a powerful engine for economic diversification”, highlights that the Emirates has achieved sustained progress thanks to the balance between its oil and non-oil sectors. This combination has allowed the country to maintain a stable, resilient economy that is open to new investment opportunities.

Gulf economic projections in 2025

In addition to the UAE, the World Bank expects growth in the main countries of the Gulf Cooperation Council (GCC):

- Saudi Arabia: 3.8%

- Bahrain: 3.5%

- Oman: 3.1%

- Qatar: 2.8%

- Kuwait: 2.7%

These figures show a gradual advance in economic diversification in the region, accompanied by recent signs that point to an acceleration driven by innovation.

Digital transformation: the engine of growth in the United Arab Emirates

One of the most relevant points of the report is the role of digital transformation in the development of the Gulf. With more than 90% of 5G coverage and fast and affordable Internet access, the UAE is positioned as a technological benchmark in the region.

The World Bank notes that the adoption of artificial intelligence, investment in technology and the modernization of digital infrastructures are key factors that will boost economic growth in the Emirates in the coming years.

Greater female participation in STEM, an added value for the future

Safaa El Tayeb El Kogali, director of the World Bank Division for the GCC, highlights that women's participation in STEM areas in the Gulf exceeds the global average. This reinforces the region's digital competitiveness and brings highly qualified talent to the labor market.

Recommendations for harnessing the potential of digital transformation

The report suggests strengthening the small and medium-sized enterprises (SMEs) to adopt AI-based technologies, in addition to implementing training programs that prepare the workforce for new market demands.

These steps will be essential for the UAE and the rest of the Gulf countries to maximize the benefits of economic diversification and the digital revolution.

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