In 2024, the United Arab Emirates (UAE) solidified its position as a global economic powerhouse, demonstrating remarkable resilience and growth amid turbulent global conditions. Sheikh Mansour bin Zayed Al Nahyan, the UAE's Vice President and Deputy Prime Minister, emphasized the nation's commitment to sustainable development, driven by strategic leadership aimed at enhancing global competitiveness. The Central Bank of the UAE (CBUAE) released its annual report, highlighting significant economic achievements and initiatives that have shaped the financial landscape of the nation.
According to Sheikh Mansour, the CBUAE's efforts in 2024 were pivotal in supporting economic growth, ensuring monetary stability, and enhancing financial inclusion. The UAE's economy recorded a growth rate of approximately 3.9%, largely propelled by robust performance in non-oil sectors. Investments in fixed assets surpassed 4 trillion and 560 billion dirhams, positioning the UAE as a leading nation in the Middle East.
Sheikh Mansour noted, "The annual report of the Central Bank sheds light on the key achievements made during 2024, focusing on its vital role in supporting economic growth and protecting financial stability." The report provides a comprehensive analysis of financial, monetary, and economic developments, illustrating the UAE's commitment to sustainable development and financial stability.
The CBUAE's initiatives in 2024 included the development of proactive policies to address environmental risks, aligning with the strategic objectives of the 'We the UAE 2050' vision. Khaled Mohamed Balama, the Governor of the Central Bank, stated, "Our initiatives are aimed at enhancing financial stability, developing innovative financial services, and promoting sustainable development for future generations."
As the global economy faced challenges, including rising trade tensions and inflation, the UAE emerged as a beacon of stability. The US administration's imposition of tariffs ranging from 10% to 50% on imports triggered significant market disruptions, resulting in a loss of $2.5 trillion on Wall Street. In response, China retaliated with a 34% tariff on all American imports, further exacerbating global economic uncertainty.
In this context, the UAE's strategic economic policies and favorable business environment attracted high-net-worth individuals and multinational corporations seeking safe investment opportunities. The UAE's competitive corporate tax system, introduced in June 2023, imposed a 9% tax on profits exceeding 375,000 dirhams, while larger multinational companies will face a 15% tax starting in January 2025. This tax framework balances competitiveness with compliance to international standards, creating a business-friendly environment.
The UAE's real estate market has experienced a significant boom, driven by an influx of wealthy individuals. Predictions suggest that the UAE could attract up to 6,700 high-net-worth individuals in 2025 alone, bolstered by migration from the UK and Europe. By 2030, the nation is expected to welcome over 30,000 millionaires, reinforcing its status as a global wealth hub.
Dubai, in particular, has seen a surge in real estate sales, with transactions reaching 100 billion dirhams by March 4, 2025. Luxury properties in areas like Palm Jumeirah and Downtown Dubai are in high demand, with nearly 20% of homes in Dubai valued at over a million dollars. This trend has led to the emergence of numerous "millionaires by chance" among homeowners.
Sheikh Mansour's vision for the UAE includes continued efforts to enhance financial stability and innovation in the financial sector. The CBUAE's strategic initiatives aim to strengthen the financial system and achieve sustainable development. As Khaled Mohamed Balama remarked, "We will continue our diligent work to establish the UAE as a global financial hub and build a prosperous future for the financial sector, reflecting the world's confidence in our economy and our ability to innovate and excel."
In summary, the UAE's strategic location, advanced infrastructure, and favorable economic policies have made it an attractive destination for investors seeking stability and growth. Amidst global economic uncertainties, the UAE continues to exemplify resilience and opportunity, positioning itself as a leading player on the world stage.
