The International Monetary Fund (IMF) anticipates that Abu Dhabi’s economy will expand by 4.2% in 2025, with growth accelerating to 5.8% in 2026.
Dubai’s economic output is expected to increase by 3.3% in 2025, rising slightly to 3.5% the following year.
During a media briefing hosted by the Dubai International Financial Centre in partnership with the IMF, Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, stated that the UAE economy is forecast to grow by 4% in 2025.
He credited the UAE’s continued growth outlook—despite downgrades for many other economies—to robust performance in the non-oil sector, ongoing infrastructure development, and expansion in major industries such as real estate and finance. He also predicted that growth would reach 5% in 2026.
Azour highlighted that the GCC countries differ in their economic frameworks and reserve capacities, which results in varied responses to shifts in global markets.
He noted that the average growth rate for the broader Middle East and North Africa region stood at 1.8% in 2024 and is expected to climb to 2.6% in 2025 and 3.4% in 2026.
These projections have been revised downward from the IMF’s October 2024 estimates, which had forecast growth of 4% for 2025 and 4.2% for 2026.
