The International Monetary Fund has revised its growth forecast for the UAE’s economy to 4.8% for the current year, an increase from previous projections made in April.
The Fund also anticipates that the UAE’s economy will grow by 5% in 2026, which aligns with earlier forecasts from April.
During a press conference in Dubai, Jihad Azour, the Director of the Middle East and Central Asia Department at the IMF, stated that this year’s growth rate of 4.8% is expected to be the highest among Arab nations.
The IMF predicts that growth in the Middle East and Central Asia will accelerate to 3.5% this year, followed by 3.8% in 2026, up from 2.6% in 2024.
In comparison to its April forecasts, the IMF has uplifted its predictions for the region; in April, it estimated growth of 3% for 2025 and 3.5% for 2026.
Global growth expectations have also been raised in the latest edition of the World Economic Outlook report, with projections increasing to 3.2% for 2025 and 3.1% for 2026, following a previous report from April 2025. Developed economies are expected to show growth of around 1.5%, while emerging and developing economies are set to surpass 4%.
Jihad Azour explained that the strong economic performance in the UAE encompasses both the oil and non-oil sectors, driven by robust advancements in services, tourism, real estate, and financial services.
He noted that the gradual easing of OPEC+ production cuts in recent years has particularly benefited energy-exporting Gulf Cooperation Council countries, especially the UAE and Saudi Arabia, leading to an increase in oil production.
The main drivers of growth in the UAE are attributed to the strong economic performance in Abu Dhabi and Dubai, with forecasted growth rates of 6% for Abu Dhabi and 3.4% for Dubai this year.