Abu Dhabi: The International Monetary Fund (IMF) forecasts Abu Dhabi's economy to grow by 4.2% in 2025 and accelerate to 5.8% in 2026. Dubai's economy is projected to expand by 3.3% in 2025, increasing to 3.5% in 2026.
According to Emirates News Agency, Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, expressed during a media briefing organised by the Dubai International Financial Centre in cooperation with the IMF, his expectation that the UAE economy will grow by 4% in 2025. He attributed the sustained growth forecast for the UAE to the strong performance of its non-oil sector, infrastructure investments, and expansion in key areas like real estate and finance. Azour further anticipates growth to accelerate to 5% in the following year.
Azour emphasized that the GCC states do not have identical economic structures or reserve levels, which makes their response to global market fluctuations varied. He noted that the average growth of the region's economies in the Middle East and North Africa reached 1.8% in 2024 and is expected to rise to 2.6% in 2025 and 3.4% in 2026.
These figures represent a downward revision from the October 2024 estimates, which had projected growth of 4% for 2025 and 4.2% for 2026.