According to the Gulf Economic Update (GEU) Fall 2025, released by the World Bank, the UAE is poised for a remarkable economic growth of 4.8 percent this year. The report, named "The Gulf’s Digital Transformation: A Powerful Engine for Economic Diversification," illustrates the UAE's balanced progress across both oil and non-oil sectors. An increase in real GDP of 4.8 percent is expected in 2025, positioning the UAE as a frontrunner in diversifying its export portfolio.

Other GCC nations are anticipated to see growth as well: Saudi Arabia at 3.8 percent, Bahrain at 3.5 percent, Oman at 3.1 percent, Qatar at 2.8 percent, and Kuwait at 2.7 percent. The report addresses three essential aspects: tracking economic developments, assessing diversification over the past decade, and underscoring digital transformation's pivotal role.

It is noted that while GCC countries have made steady strides in diversification, recent years have shown promising trends. Swift digital integration, notably in artificial intelligence (AI), is enhancing competitiveness in the region. With advanced telecommunications infrastructure, over 90 percent 5G coverage, and accessible high-speed internet, the GCC is well on its way. Significant investments in data centers and high-performance computing are fortifying AI readiness, with the UAE and Saudi Arabia taking the lead both regionally and globally.

Safaa El Tayeb El Kogali, World Bank Division Director for the GCC, emphasized that diversification along with digital transformation are vital for sustained economic stability. Key drivers of innovation include robust infrastructure, expanding computing capabilities, and increasing skills in AI. Additionally, the report highlighted that women’s participation in STEM fields in the Gulf exceeds the global average, boosting digital competitiveness.

The report advocates for measures like empowering small and medium-sized enterprises (SMEs) to adopt AI, implementing workforce training programs, and addressing labor-market obstacles. These initiatives aim to leverage the rewards of economic diversification and digital transformation, ensuring sustainable growth and prosperity across the Gulf region.