UAE defies global slowdown: IMF sees strong growth in 2025 and 2026
Gulf economies show varied resilience, but the UAE stands out amid global downgrades, outperforming broader MENA growth expectations.
The UAE economy is set for robust growth, driven by non-oil sectors like real estate, finance, and infrastructure.
The IMF expects Abu Dhabi’s economy to grow by 4.2% in 2025, rising to 5.8% in 2026, fueled by strong non-oil activity and ongoing infrastructure investment. Dubai’s growth is forecast at 3.3% in 2025 and 3.5% in 2026, also supported by momentum in sectors like real estate and finance.
UAE-wide, the economy is projected to expand by 4% in 2025 and accelerate to 5% in 2026, according to Jihad Azour, Director of the IMF’s Middle East and Central Asia Department.
Azour highlighted the UAE’s resilience compared to other nations that have seen their forecasts revised downward. He noted that GCC economies vary significantly in structure and reserves, making their responses to global fluctuations uneven.
As for the broader MENA region, growth averaged 1.8% in 2024, and is expected to reach 2.6% in 2025 and 3.4% in 2026, lower than previous IMF projections from October 2024.
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