The World Bank has projected that the Gross Domestic Product (GDP) of the United Arab Emirates (UAE) will grow by 4.6% in 2025 and by 4.9% in 2026.
This marks an upward revision from earlier forecasts, which estimated a growth rate of 4.1% for both years.
The report highlights that the UAE’s economic activity is likely to benefit from the gradual increase in oil production planned by OPEC+ from April 2025 to September 2026. It also emphasizes that ongoing diversification efforts are aimed at bolstering growth in non-oil sectors within the country.
The report, titled “How the Private Sector Can Boost Growth in the Middle East and North Africa,” indicates a slight acceleration in real GDP growth for the region, with expectations of reaching 2.6% in 2025 and 3.7% in 2026.
Additionally, it anticipates that the economies of the Gulf Cooperation Council (GCC) will see growth of 3.2%, while oil-exporting developing countries may grow by 0.8%, and oil-importing developing nations could experience a growth of 3.4% in 2026.
The report also identifies potential risks that could hinder the anticipated economic recovery in the region, including fluctuations in global oil prices, a possible slowdown in global demand, and increasing uncertainty surrounding global economic policies.