The International Monetary Fund expects the UAE economy to grow by 4% in 2025 and 5% in 2026, supported by non-oil sector expansion, infrastructure spending, and growth in real estate and financial services, according to Jihad Azour, Director of the IMF’s Middle East and Central Asia Department.
At a briefing hosted by the Dubai International Financial Centre and the IMF, Azour said Abu Dhabi’s economy is forecast to grow by 4.2% in 2025 and 5.8% in 2026. Dubai is projected to expand by 3.3% and 3.5% over the same two-year period.
Azour noted that differences in economic structure and fiscal buffers across GCC countries continue to shape how each responds to global market shifts.
The IMF revised its regional forecast downward from previous estimates. It now expects the Middle East and North Africa region to grow 2.6% in 2025 and 3.4% in 2026, compared to October 2024 projections of 4% and 4.2%, respectively. The region grew by 1.8% in 2024.
The IMF has highlighted the UAE’s relative resilience amid global economic uncertainty, driven by a broadening non-oil base and continued public investment.
