The UAE's non-oil economy is expected to expand by 4.7% in 2024, driven by economic diversification and fiscal surpluses that help address global challenges, according to a senior executive at UBS Global Wealth Management.

The non-oil sector is on track for sustainable growth, bolstered by a thriving tourism and real estate market, increased government spending on capital projects, and strong foreign direct investment inflows, as reported by the UAE's state-run Wam news agency, citing UBS Chief Investment Officer Michael Bolliger.

This reflects the UAE's strong ability to adapt to global challenges, thanks to its diversification efforts and fiscal surpluses, Arabian Business reports.

Indeed, the UAE's real estate sector is experiencing significant growth, with residential sales rising by 60% and a surge in mortgage applications, fuelled by low interest rates.

Relaxed visa policies and changes to business ownership laws have also attracted more foreign businesses and tenants, boosting investment in commercial properties across Dubai and Abu Dhabi.

Furthermore, the construction sector continues to be a major economic driver, supported by ongoing government investment in large-scale infrastructure projects, according to Bolliger.

Elsewhere, the UAE’s tourism sector is seeing substantial growth, with Dubai’s tourism industry not only recovering to pre-pandemic levels but also witnessing a steady rise in international visitor numbers since the beginning of the year.

Oil GDP is also projected to grow by 4.2% in 2025, with the UBS executive noting that the UAE economy is expected to maintain its growth momentum and continue on a positive trajectory in the years ahead.

In October, the International Monetary Fund forecast the UAE's GDP to grow by 4% in 2024, increasing to 5.1% in 2025.