The International Monetary Fund (IMF) forecasts that Abu Dhabi’s economy will grow by 4.2% in 2025, with further acceleration to 5.8% expected in 2026. Meanwhile, Dubai’s economy is projected to expand by 3.3% in 2025, increasing slightly to 3.5% in 2026.

Jihad Azour, the Director of the Middle East and Central Asia Department at the IMF, stated during a media briefing held in cooperation with the Dubai International Financial Centre that he anticipates the overall UAE economy to grow by 4% in 2025. This positive outlook is attributed to the strong performance of the UAE’s non-oil sector, significant infrastructure investments, and growth in vital areas such as real estate and finance. Azour also expects growth to accelerate to 5% in 2026.

During the briefing, Azour emphasized that Gulf Cooperation Council (GCC) states do not share identical economic structures or reserve levels, which leads to varying responses to global market fluctuations. He noted that the average growth rate for the economies in the Middle East and North Africa reached 1.8% in 2024 and is projected to rise to 2.6% in 2025 and 3.4% in 2026.

These growth figures represent a downward revision from previous estimates made in October 2024, which had projected growth rates of 4% for 2025 and 4.2% for 2026.