By Staff Reporter
The International Monetary Fund expects the UAE economy to grow by 4% in 2025, outpacing much of the region despite broader global headwinds, according to updated projections released during a briefing in Dubai.
Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, said the UAE’s strong non-oil sector, infrastructure investment, and growth in real estate and finance continue to support economic momentum. He added that growth is likely to accelerate further to 5% in 2026.
Abu Dhabi is forecast to lead the way with 4.2% growth in 2025 and a sharp rise to 5.8% in 2026. Dubai’s economy is also expected to expand steadily, growing by 3.3% in 2025 and 3.5% the following year.
Azour delivered the outlook during a media session held by the Dubai International Financial Centre in collaboration with the IMF, noting that the UAE stands out even as other countries in the region face downward revisions to earlier forecasts.
Across the broader Middle East and North Africa region, the IMF now expects economic growth of 2.6% in 2025 and 3.4% in 2026—revised down from October 2024 projections of 4% and 4.2%, respectively. Regional growth in 2024 is estimated at just 1.8%.
Azour stressed that the Gulf Cooperation Council states vary significantly in their economic structures and reserves, meaning their responses to global market changes will differ in pace and impact.
News Source: Emirates News Agency
