UAE Economic Growth Seen at 4.8% in 2025, Says World Bank The report also noted that women's participation in STEM fields in the Gulf exceeds the global average.
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The latest edition of the Gulf Economic Update (GEU) – Fall 2025, issued by the World Bank, forecasts that the UAE economy will grow by 4.8 percent.
The report, titled "The Gulf's Digital Transformation: A Driver of Economic Diversification," confirmed that the UAE continues to record balanced growth across both oil and non-oil sectors.
Real GDP is expected to grow by 4.8 percent in 2025, and the UAE continues to expand its export base. The report also projected economic growth of 3.8 percent for Saudi Arabia, 3.5 percent for Bahrain, 3.1 percent for Oman, 2.8 percent for Qatar, and 2.7 percent for Kuwait.
The update focuses on three main areas: trends in economic diversification over the past decade, macroeconomic developments, and digital transformation.
It reviewed diversification efforts across GCC countries over the past ten years, indicating moderate progress, with several positive indicators emerging in recent years.
The report also highlighted rapid digital transformation in the Gulf and increased adoption of artificial intelligence, noting that all GCC countries have advanced telecommunications networks, with over 90 percent 5G coverage and affordable high-speed internet.
Investments in data centers and high-performance computing are strengthening AI readiness, with the UAE and Saudi Arabia identified as regional leaders.
This progress is supported by enabling ecosystems, including financing, innovation infrastructure, and government adoption of generative AI applications.
Safaa El Tayeb El Kogali, World Bank Division Director for the Gulf Cooperation Council, said that diversification and digital transformation are essential to achieving long-term economic stability.
She added that improvements in infrastructure, computing capacity, and AI-related skills are strengthening the region's position in digital development, provided environmental and labor market challenges are addressed.
The report also noted that women's participation in STEM fields in the Gulf exceeds the global average, supporting the region's digital competitiveness.
It recommended supporting small and medium-sized enterprises (SMEs) in adopting AI to drive innovation, along with workforce training programs to address skills gaps and maximize the benefits of diversification and digital transformation.
