By Desmond Nleya
The United Arab Emirates’ economy is expected to sustain strong growth momentum, with the World Bank forecasting expansion of 5 percent in 2026, increasing slightly to 5.1 percent in 2027, according to its latest Global Economic Prospects report released on Wednesday.
The projection places the UAE among the world’s faster-growing economies, highlighting its resilience despite ongoing global trade tensions and policy uncertainty. The World Bank noted that global economic conditions have been more robust than previously anticipated, leading to upward revisions in its overall outlook.
At the global level, economic growth is now expected to reach 2.6 percent in 2026 and 2.7 percent in 2027, marginally higher than earlier estimates. The improved forecast is largely attributed to stronger-than-expected economic performance in the United States, which accounts for nearly two-thirds of the upward revision.
However, the report cautioned that the current decade is likely to be the weakest period for global growth since the 1960s. Slower economic expansion continues to widen income disparities, with many developing countries still below their pre-2019 per capita income levels.
Regionally, growth across Gulf Cooperation Council (GCC) countries is projected at 4.4 percent in 2026 and 4.6 percent in 2027. The wider Middle East, North Africa, Afghanistan and Pakistan (MENAP) region is forecast to grow by 3.6 percent in 2026, accelerating to 3.9 percent the following year.
Global inflation is expected to moderate to 2.6 percent in 2026, supported by easing labour market pressures and lower energy prices. The World Bank anticipates stronger growth in 2027 as trade conditions stabilise and policy uncertainty declines.
Source: Emirates News Agency
