The International Monetary Fund (IMF) has raised its forecast for the UAE’s real GDP to 4.8% for 2025, compared with its previous projection released in April. Additionally, the Fund projected in its latest World Economic Outlook (WEO) that the UAE’s economy will grow by 5% in 2026, a forecast unchanged from the earlier projection.
According to the WEO, global growth is expected to slow slightly from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026. Advanced economies are projected to grow around 1.5%, while emerging market and developing economies are expected to expand just above 4%.
Middle East and Central Asia Outlook
Growth in the Middle East and Central Asia is projected to accelerate from 2.6% in 2024 to 3.5% in 2025, and further to 3.8% in 2026. Compared with the April projections, the 2025 forecast has been revised upward by 0.5 percentage points.
Policy Recommendations for Sustained Growth
The WEO urged policymakers to restore confidence through credible, transparent, and sustainable policies. It recommended pairing trade diplomacy with macroeconomic adjustment, rebuilding fiscal buffers, and preserving central bank independence. Furthermore, it called for redoubling efforts on structural reforms to support long-term stability and growth.
