The latest Gulf Economic Update drops with a clear message: the UAE is not just cruising—it’s accelerating. A fresh forecast pins the nation’s real GDP growth at 4.8% in 2025, powered by a rare balance between what’s beneath the ground and what’s built above it.
The wider Gulf picture glows with steady momentum—Saudi Arabia, Bahrain, Oman, Qatar, and Kuwait each charting their own upward arcs—yet the UAE stands out for its pace and its playbook. This is a country that treats diversification not as a buzzword, but as a national habit. Its export base is widening, its economy broadening, its resilience deepening.
At the heart of the report lies a three-pillar story: a decade-long march toward economic diversification, the macro shifts shaping the region, and the digital transformation now rewriting the rules. The Gulf’s digital leap has gone from intriguing to undeniable—5G blankets more than 90% of the region, high-speed internet comes cheap, and AI is no longer an experiment but an operating principle.
Data centres rise like the new oil derricks. High-performance computing hums as the next engine of competitiveness. The UAE and Saudi Arabia now sit at the front of the regional AI race, and increasingly, within striking distance of global leaders.
Beneath the tech sheen is a deeper reshaping. Gulf countries are investing in ecosystems that don’t just enable innovation—they expect it. Financing channels, digital-ready infrastructure, and early government adoption of generative AI tools are transforming how states operate and how companies grow.
An especially striking insight from the update: women in the Gulf are participating in STEM at rates above the global average, adding a force multiplier to the region’s digital capabilities.
But momentum alone won’t future-proof an economy. The report underscores the need to keep building: SMEs must be pushed toward AI adoption, labour forces must be upskilled, and environmental and workplace challenges must be addressed head-on.
Still, the direction is unmistakable. The Gulf is no longer preparing for a digital era—it’s already living in it. And among its front-runners, the UAE’s stride is the one setting the rhythm.
