The UAE's GDP is projected to grow by 5% in 2025, supported by strong non-oil sectors and ongoing economic diversification. However, the S&P Global PMI for January fell slightly to 55.0, indicating lower business confidence and modest cost increases. The Central Bank of the UAE maintained the base interest rate at 4.40%. Global oil prices are forecast to average $73.01 per barrel in 2025, influenced by geopolitical factors. Global growth is projected at 3.3%, with inflation expected to decrease. The GCC is focusing on food security innovations, which could boost the economy by $30.5 billion. Gulf stock markets showed mixed results, with Dubai’s index rising by 0.3% and Abu Dhabi’s remaining stable.

The attached monthly report highlights major economic and financial trends unfolding across the UAE and the GCC region.

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