The UAE economy is on track to grow 7% annually in the coming period if interest rates and inflation continue to decline globally, Economy Minister Abdulla bin Touq Al Marri told CNBC Arabia.

REMEMBER- The UAE is targeting a GDP of AED 3 tn by 2031. Al Marri has repeatedly said 7% annual growth is a “ personal target ” of his, citing that figure in 2023 and 2024.

High levels of inflation and rates have weighed on investments and economic growth over the past few years, Al Marri said, adding that the country’s growth rate of between 4-6% is still higher than the global 2-3% average.

Remember: Al Marri said last month that he sees the UAE’s economy growing by around 5-6% in 2025, up from 4% in 2024. Growth will be driven by strong performances in sectors that include “technology, renewable energy, trade, financial services, and infrastructure,” he said.

Not everyone is as optimistic about the UAE’s growth this year: Fitch Solutions’ research unit BMI recently revised its forecast for the UAE’s economy this year to 5.1%, slightly down from 5.2% predicted in October, while the International Monetary Fund and the World Bank revised their forecasts for the UAE’s economy this year to 4%. Meanwhile, the Central Bank of the UAE (CBUAE) penciled in a higher growth estimate of 4.5% in 2025 in December.

ِALSO- Al Marri said the government will issue six new regulations in 1H 2025 regarding the cooperatives law, with new cooperatives planned in the health, education, and retail sectors, he told CNBC Arabia. This comes as the government aims to increase the contribution of the cooperatives sector to GDP to 5%, compared to the current level of 1-1.1%.

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