The UAE has officially declared Friday, June 27, 2025, as a paid public holiday for the Islamic New Year — giving residents across the country a welcome long weekend.

The Ministry of Human Resources and Emiratisation announced on Monday that the private sector would observe the day off, following an earlier confirmation from the Federal Authority for Government Human Resources for public sector employees.

The holiday marks the beginning of the Islamic year 1447 AH and commemorates the Hijrah — the Prophet Muhammad’s (PBUH) migration from Mecca to Medina in 622 CE — a defining moment that signifies the start of the Islamic lunar calendar.

Though the Islamic New Year, or Ra’s As-Sanah Al-Hijriyah, is not traditionally celebrated with the same prominence as Eid Al Fitr or Eid Al Adha, it remains a significant spiritual occasion and is recognised as an official public holiday in the UAE.

With the day falling on a Friday, many in the country will enjoy an extended weekend.

Looking ahead, the next expected public holiday will be Mawlid Al Nabawi, the birthday of the Prophet Muhammad (PBUH), likely to fall on Thursday, 4 September 2025 — subject to official moon-sighting confirmation.

The UAE’s final public holidays for the year will be Commemoration Day and National Day, observed on 2 and 3 December respectively.

Economic growth in the UAE is set to remain buoyant, expanding by 5.1 per cent in 2025, up from 3.8 per cent last year.

This is according to the latest Q2 economic update from the Institute of Chartered Accountants in England and Wales (ICAEW).

The forecast, produced in partnership with Oxford Economics, highlights a strong rebound in oil production alongside robust non-oil sector momentum, supported by international trade, tourism and advanced technology.

The institute expects UAE oil production to average 3.8 million barrels per day (bpd) by 2027, in line with efforts to raise capacity to 5mn bpd.

“A significant increase in supply is likely through 2027–2028 to capitalise on enhanced production capacity and maximise returns before a significant global transition away from fossil fuels,” said ICAEW in its latest report.

“This will provide a robust stream of revenue and enable the government to support overall GDP growth,” ICAEW said:

Non-oil GDP growth remains solid, underpinned by strong purchasing managers’ index (PMI) readings and a sharp rise in international trade. The UAE is pursuing 27 Comprehensive Economic Partnership Agreements (CEPAs), and foreign trade exceeded Dhs3trn for the first time in 2024.

Read more: Here’s what the latest S&P PMI index says about the UAE

“These agreements are improving access to key markets and enhancing trade terms,” the report noted, projecting non-oil GDP growth of 4.7 per cent in 2025, in line with last year’s pace.

Tourism remains a central pillar of growth. International visitor spending is expected to reach Dhs267.5bn in 2025, accounting for nearly 13 per cent of GDP. Dubai recorded 5.3 million international visitors in Q1 2025, up 3 per cent year-on-year.

The report stated that this growth “aligns with Emirate-level strategy, where the D33 agenda aims to position Dubai as a leading global tourism hub”.

ICAEW also pointed to the recent launch of the “US-UAE AI Acceleration” framework, which it described as a major opportunity for technology investment and knowledge exchange. The initiative was announced during President Trump’s recent visit to the UAE and is expected to enhance bilateral cooperation.

Inflation in the UAE is forecast to average 2.5 per cent in 2025. While price pressures remain contained, housing and recreation costs in Dubai continue to be the main contributors.

Saudi Arabia: Growth rebounds as oil production rises

Meanwhile, Saudi Arabia’s economy is also gaining momentum. ICAEW forecasts GDP growth of 5.2 per cent in 2025, up from 1.3 per cent last year, driven by higher oil output and strong domestic demand.

Oil production is set to average 9.7mn bpd this year, lifting oil-sector GDP.

Non-oil industries — particularly construction, trade and the digital economy — are expanding as Vision 2030 accelerates. ICAEW expects non-oil growth of 5.3 per cent this year, underpinned by job creation and private sector activity.

GCC and Middle East outlook: Resilience despite tariffs

Across the region, GCC economies are projected to grow by 4.4 per cent in 2025, while Middle East GDP is forecast to expand by 3.5 per cent, according to ICAEW.

“The GCC economies are showing remarkable adaptability amid shifting global trade dynamics. Investments in tourism, technology, and infrastructure continue to pay dividends, strengthening resilience and laying the groundwork for long-term growth,” said Hanadi Khalife, head of Middle East, ICAEW.

While the US has introduced a 10 per cent tariff on GCC goods, ICAEW said the impact on the region will be limited.

Energy exports are exempt, and only around 3 per cent of GCC exports head to the US.

“Despite tariff headwinds and heightened trade uncertainty, we continue to expect Middle East growth to be stronger this year than in 2024,” the report said.

The upward revision to regional growth is supported by faster OPEC+ oil supply increases and sustained strength in sectors such as tourism, real estate and capital markets.

UAE’s based luxury real estate developer Binghatti Holding has launched Binghatti Capital Limited, an asset management firm based in the Dubai International Financial Centre (DIFC).

The new entity plans to manage approximately $1bn in Shariah-compliant private credit and real estate strategies.

Binghatti Capital has received authorisation from the Dubai Financial Services Authority (DFSA), the independent regulator for financial services conducted in or from DIFC.

The firm is licensed to work exclusively with professional clients.

As part of its real estate strategy, Binghatti Capital will implement separate mandates covering the acquisition and sale of off-plan residential properties, as well as the development and sale of residential projects. Its private credit platform will offer supply chain financing solutions to construction companies, property management entities, and key sector suppliers.

In addition to private funds, Binghatti Capital will offer discretionary and non-discretionary portfolio mandates, providing tailored investment solutions to meet the specific objectives of professional clients.

Read: Binghatti acquires mega plot for Dhs25bn master planned community in Dubaitti

Move to deepen Binghatti Holding’s investment footprint

Katralnada Binghatti, Executive Director of Binghatti Capital, said: “The creation of an asset management arm represents a strategic move to deepen Binghatti Holding’s investment footprint and enhance access to alternative capital.

“We believe that Binghatti Capital’s offerings are one of a kind, underscoring our long-term vision to expand into high-value, income-generating investments that deliver sustainable growth. Through our new Shariah-compliant private investment strategies, we are not only reinforcing our position in the UAE’s real estate sector but are supporting Dubai’s efforts to become one of the world’s leading foreign investment destinations.”

Shehzad Janab, SEO of Binghatti Capital, added: “Binghatti Capital represents a strategic extension of Binghatti Holding’s capabilities, designed to accelerate growth and strengthen resilience, ensuring sustained success through all market conditions. Our inaugural suite of what we believe are unique strategies represents a thoughtful, well-structured approach to real estate investing, providing access to opportunities that are typically reserved for large institutions.

“Through disciplined governance, active management, and a strong Shariah-compliant foundation, we aim to deliver compelling returns while diversifying our source of capital for Binghatti Group’s future developments.”

Salmaan Jaffrey, chief business development officer at DIFC Authority, said: “We are delighted to welcome Binghatti Capital to DIFC, the region’s largest financial centre and home to more than 46,000 professionals.

“Binghatti Capital’s presence will further strengthen Dubai’s financial ecosystem and reinforce DIFC’s position as the leading hub for asset management in the region. With over 400 wealth and asset management firms, DIFC continues to be the preferred destination for asset management companies seeking growth and opportunity in the region.”

Total public spending by the six Gulf Cooperation Council (GCC) countries is expected to reach $542.1bn in the 2025 financial year, according to data released by the GCC Statistical Center (GCC-Stat).

According to a report published by the state news agency, WAM, the six member states — the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain — have largely projected higher public expenditures compared to 2024, directing increased funds toward infrastructure completion and targeted economic sector growth in line with long-term development strategies.

GCC-Stat data shows that government revenues across the bloc are forecast to remain relatively stable in 2025, supported by expectations that global oil prices will remain at moderate to high levels throughout the year.

Total public revenues for the GCC countries are estimated at $487.8bn, resulting in a combined budget deficit of $54.3bn for the year, the WAM report stated.

Read: GCC to outpace the global economy in 2025: FAB

Oil revenues: Major part of GCC government income

Oil revenues remain the largest component of government income in the region, making fiscal positions highly sensitive to global oil price fluctuations.

To mitigate risk, GCC countries adopt a conservative methodology when calculating break-even oil prices in their budget frameworks, aiming to buffer against volatility in the international energy markets.

To bridge the fiscal gap, GCC countries plan to rely on a mix of financial reserves and both domestic and international borrowing