By Staff Reporter
The UAE’s economy is on track for robust growth, with the World Bank projecting a 4.6% expansion in 2025 and further strengthening to 4.9% through 2026 and 2027, driven primarily by non-oil sectors.
According to the latest Gulf Economic Update, released by the World Bank based on data through June 1, non-oil industries will remain the engine of growth across the UAE, expanding by 4.9% in 2025. This performance reflects the country’s ongoing efforts to diversify its economy and reduce reliance on hydrocarbons.
The wider GCC region is also expected to rebound, with growth forecast at 3.2% in 2025 and rising to 4.5% in 2026. The report highlights a regional economic uptick from 0.3% in 2023 to 1.7% in 2024, fueled by strong private consumption, increased investment, and structural reforms.
GCC countries are navigating global headwinds, including uncertainties around trade and the risk of a broader economic slowdown. The World Bank stresses the need for accelerated reform to bolster regional trade and economic diversification.
Safaa El Tayeb El-Kogali, World Bank Director for the GCC, praised the bloc’s resilience and emphasized the importance of
“strategic fiscal policies, targeted investments, and a strong focus on innovation and job creation.”
The report also explores the impact of fiscal policy on stability, noting that public spending has helped shield GCC economies during downturns. A one-unit rise in fiscal spending can lift non-oil output by up to 0.45 units, underscoring the importance of smart budget strategies amid fluctuating oil prices.
News Source: Emirates News Agency
