June 2025 Edition: Quarterly Economic & Financial Insights 

The UAE economy grew by 4.0% in 2024, mainly due to strong non-hydrocarbon activity, while the hydrocarbon sector saw slight recovery. Growth forecasts for 2025 and 2026 were revised downward to 4.4% and 5.4%, respectively, amid global uncertainty, weaker external demand, and falling oil prices. Despite softer new orders in June due to regional tensions, business sentiment improved and output increased. The UAE’s non-oil trade and capital markets posted strong growth, and the insurance sector showed solid performance with rising premiums, claims, and technical provisions. The Central Bank maintained its base rate at 4.40%, in line with the US Federal Reserve.

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

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