The UAE is set to retain its position as the fastest-growing economy in the GCC in 2025, with a projected growth rate of 6.7%, according to KPMG’s latest CEO Outlook report. As reported by Khaleej Times, this marks a significant rise from the 3.8% growth expected this year. The growth is being driven by the country’s efforts to diversify its economy and strengthen trade ties within the region.

Tourism continues to play a major role in this economic expansion. Dubai, in particular, saw a surge in international visitors earlier this year, with 1.77 million tourists arriving in January and 1.9 million in February 2024, according to the Department of Economy and Tourism (DET). Hotel guest spending is also forecasted to increase from $723.4 billion in 2023 to $758.61 billion in 2024.

KPMG highlighted the UAE’s resilience, noting that strategic investments in industrial development and sustainability have positioned the country as a global hub for innovation. Walter Palk, Partner and Head of Clients and Markets at KPMG Lower Gulf, said the UAE’s investments in these areas reflect its strong potential for long-term growth.

The UAE also ranks highly in global influence and safety. It secured its highest-ever position in the 2023 Soft Power Index, placing 10th worldwide and first in the Middle East. The report credits the nation’s cultural diplomacy, business-friendly policies, and aviation infrastructure—spearheaded by Emirates and Etihad airlines—for its global connectivity.

In addition to bolstering its economy, the UAE has announced major investments to drive development. Abu Dhabi has committed $10 billion to tourism infrastructure, while Adnoc Gas plans to spend $13 billion over the next five years to expand global and local gas operations. Dubai has also approved a $10.9 billion public-private partnership portfolio aimed at advancing infrastructure projects.

The nation’s security continues to attract global attention as well. Abu Dhabi was ranked the safest city in the world by Numbeo’s 2024 Safety Index, with Dubai coming in fourth. Globally, the UAE is recognised as the third safest country, according to the 2024 Gitnux Marketdata Report.

The country’s appeal extends to high-net-worth individuals. For the third year in a row, the UAE is expected to be the world’s top destination for wealthy migrants, with 6,700 millionaires expected to relocate there by the end of 2024, based on the Henley and Partners’ 2024 Private Wealth Migration Report. Many of these individuals are entrepreneurs, whose investments and business ventures are likely to boost the local economy and create job opportunities.

Looking ahead, the GCC region is expected to see overall economic growth pick up, with a rebound to 4.7% in 2025. The UAE and Saudi Arabia are set to lead this recovery, supported by higher oil production and continued expansion in non-oil sectors. The World Bank attributes this growth to improving global economic conditions and the region’s strategic focus on resilience and diversification.