The World Bank has upwardly revised its real GDP growth forecast for the UAE in 2024 to 3.9%, a rise from January's prediction of 3.7%.

As part of its economic update on the Middle East and North Africa (MENA) region, the World Bank also hiked its forecast for the UAE's economic growth in 2025 to 4.1% from its prior forecast of 3.8%.

According to the report, the UAE is anticipated to experience an increase in its current account surplus to 8.4% this year and 8.3% in 2025. 

Furthermore, the country is forecasted to attain a fiscal surplus of 5.1% by the end of this year, followed by 4.8% next year, Economy Middle East reports.

Additionally, the World Bank predicts that the MENA region will experience growth of 2.7% in 2024, indicating a return to the low growth rates observed in the decade preceding the global pandemic. By 2025, the MENA region is projected to achieve a growth rate of 4.2%.

The GCC economies, encompassing Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, are expected to see growth improve to 2.8% in 2024 and 4.7% in 2025.

This upturn is mainly attributed to increased oil output resulting from the gradual removal of production cuts, along with strong growth in the non-oil sector driven by diversification initiatives and reforms.

The World Bank anticipates modest growth in MENA's GDP per capita, with a forecasted increase of 1.3% this year, showing improvement from the 0.5% rate observed in 2023. 

This uptick is primarily driven by the GCC economies, which are expected to see GDP per capita growth of 1.0% in 2024, a notable improvement from the 0.9% decline witnessed in 2023.