UAE 🇦🇪 ECONOMY TO SOAR WITH 6.7% GDP GROWTH BY 2025.

The UAE is poised for robust economic expansion in 2025 according to new projections from global research firm BMI. While the outlook also points to potential challenges on the horizon for oil markets, the nation remains well positioned thanks to successful diversification strategies.

BMI forecasts the UAE's real GDP will jump to an impressive 6.7% growth in 2025, up significantly from an estimated 3.8% rise this year. This stellar performance would place the UAE among the fastest growing economies in the region.

John Ashbourne, BMI's Global Economist for Emerging Markets, stated the firm is "quite optimistic" about the UAE's prospects. He attributed the projected surge in growth to the country's efforts to diversify beyond oil through sectors like tourism and trade.

The UAE boasts a large thriving tourism industry as well as robust trade ties with neighboring countries like Iran, which Ashbourne cited as major contributors supporting strong expansion. The projections underscore how the nation's diversification drive is translating into accelerated GDP gains.

While the near-term economic outlook for the UAE is bright, BMI's analysis also outlined moves underway in global oil markets that could create headwinds. Oil prices are expected to hold mostly steady at $82-84 per barrel through 2024-2025.

However, peaked consumption may be approaching. Demand in developed countries is projected to plateau in 2025-2026 as fuel efficiency and electric vehicles curb usage. Worldwide, need for crude may max out around 2034-2035.

China's shifting energy trajectory could significantly impact balances. The top oil importer transitioning faster to EVs may see demand peak in the late 2020s or early 2030s, sooner than forecast. As the largest energy consumer transitions away from petroleum, it could squeeze producer revenues.

Despite these potential changes redrawing crude demand maps, the UAE is well situated to navigate transformation. Astute diversification has lessened reliance on oil exports, insulating the economy. As established trade and tourism sectors further expand and new industries take flight, non-oil growth looks set to stay robust.

In conclusion, BMI's outlook suggests the UAE will thrive as one of the world's quickest developing markets in 2025. Savvy moves help insulate it from any challenging fluctuations fossil fuel markets may experience down the line.