In Q1 2024, the UAE's real GDP reached AED 430 billion, growing by 3.4% compared to the same period in 2023, with non-oil GDP rising by 4%. The S&P Global PMI for the UAE slightly increased to 54.2 in November, reflecting continued expansion in the non-oil private sector, despite a slight slowdown and higher input costs. On December 19, 2024, the UAE Central Bank cut the Base Rate for the Overnight Deposit Facility by 25 basis points to 4.40%, following the US Federal Reserve's rate adjustment. Meanwhile, crude oil inventories in the US dropped by 4.7 million barrels in early December 2024, marking an 8 million barrel decline for the year. The IMF forecasts global GDP growth at 3.2% in 2024, with MENA growth expected to rise to 2.8% in 2024 and 4.2% in 2025. The UAE also saw a 35% increase in foreign direct investment (FDI) inflows in 2023, reaching USD 30.7 billion, positioning it second globally in FDI inflows.

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

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