The Central Bank of the UAE (CBUAE) said the country’s GDP grew 4% to AED 2 tn in 2024, on the back of strong performances across “all economic sectors,” state news agency Wam reports. Sectors that witnessed notable growth include the financial, banking, and ins. sectors.

The growth estimate matches its original forecast, and exceeds others’ expectations: The CBUAE had maintained its growth outlook for 2024 at 4% in December and September. The cabinet also projected the country’s GDP to have surpassed AED 1.7 tn in 2024. The International Monetary Fund’s (IMF) also saw the overall GDP growing at 4%, while the World Ban had forecast growth of 3.3%.

The banking and ins. sectors flourished last year: The UAE banking sector grew its total assets by 8.6% y-o-y to reach AED 4.5 tn in November 2024 with the net non-performing loan ratio decreasing to 2.1% in 2024 compared to 2.4% in 2023. Meanwhile, the ins. sector’s gross written premiums rose by 21% y-o-y to AED 64.5 bn in 2024.

The central bank reached “record financial results” in 2024 across “all indicators.” Its total assets are expected to rise by 24.3% y-o-y to reach about AED 896 bn due to the rise in net inflows to the country’s economy.

REMEMBER- The CBUAE expects growth in 2025 to come in at 4.5%, while the IMF projects it to stay at 4%, and the World Bank predicts a slightly higher rate at 4.1%. Other financial institutions are optimistic as well, with Moody’s expecting growth to come in at 4.8% and Emirates NBD seeing it at 5%.

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