4.8% expansion for the UAE economy by 2025 is projected by Oxford Economics Middle East, driven by the growth of the non-oil sectors, with travel and tourism playing a crucial role. Visitors to Dubai and traffic at Dubai International Airport (DXB) are expected to reach record highs with a growth of 20% this year and a double-digit increase in 2024.

Despite challenges like rising interest rates, UAE government’s supportive strategies including We the UAE 2031 and Dubai’s D33 Plan are driving investment and diversification. These initiatives include 100% foreign ownership of onshore companies and reduced business setup costs, attracting foreign investors and talent, boosting population growth and the real estate sector.

It is further anticipated that the US Federal Reserve will focus on the labor market potentially cutting interest rates by 50 basis points by the end of 2024 and by 150 basis points by the end of 2025. A global economic growth rate of 2.7% for 2023 and 2024 is also forecasted, easing concerns about a potential US recession.

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