Economic overview and

key figures

Uncertainty abroad, resilience at home

GDP

in 2024

2025 forecast

Inflation

in 2024

2025 forecast

Tender Price Inflation

2-5%

2025 forecast

UAE GDP growth is expected to hit 4.6%, well above the global average of 2.3%.

Inflation is steady at 2%, showing stable domestic demand.

Tender price inflation is forecast between 2-5% in 2025, mainly due to pressure on materials and labour.

­The World Bank has lowered its global growth forecast due to changes in U.S. trade policy. But the outlook for the UAE remains strong.

Rising costs are putting pressure on project margins. But strong demand for infrastructure, housing and tourism is keeping the market active.

To ease the pressure, clients are turning to value engineering, new procurement approaches, and better cost and risk management. At the same time, both government and the private sector are working on ways to bring in more skilled labour and strengthen local supply chains.

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