United Arab Emirates: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for United Arab EmiratesBacked by ambitious efforts to diversify and modernize its economy and supported by a growing hydrocarbon sector, the UAE has shown significant resilience to global volatility and regional tensions, with growth in 2025 projected to outpace both the GCC and global averages. Non-oil sectors, including tourism and real estate, continue to expand, while the financial system has continued to attract foreign capital and has absorbed recent market volatility well. |
Contents
CONTEXT ________________________________________________________________________________________ | 4 |
POLICY DISCUSSIONS __________________________________________________________________________ | 12 |
Supporting MediumTerm Growth ________________________________ | 18 |
Monetary and Financial Sector Developments ________________________________________________ | 24 |
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Abu Dhabi Adjusted AML/CFT Annex assessment average Baseline billion buffers capital flows CBUAE Central Bank continued coverage current account Dirham diversification Domestic Dubai Dubai Land economic enhance ensure equity exchange rate expected expenditures exports exposure external sector federal financial sector financial stability fiscal balances fiscal policy fiscal policy coordination foreign assets Fund global shocks global uncertainty GREs Haver Housing Price Deviation hydrocarbon IMF Staff Calculations impact implementation improve increase Index inflation infrastructure intergenerational equity investment liquidity M-Bills macroprudential policies medium medium-term monetary policy monitoring Non-Hydrocarbon GDP Growth oil prices ongoing overall fiscal percent in 2024 percent of GDP primary balance Proj projected Public Debt public sector ratio real estate sector reforms regulatory remains robust Sources sovereign sovereign wealth fund sustainability SWFs systemic risks Text Figure Tier 1 Capital trade U.S. dollars UAE’s United Arab Emirates virtual assets volatility