Prime Highlights
- The International Monetary Fund (IMF) expects the UAE economy to grow by 5% in 2026, highlighting the country’s resilience, diversification, and strong policy framework amid global challenges.
- The UAE’s continued investments in tourism, finance, real estate, and technology are driving robust non-oil sector growth and strengthening investor confidence.
Key Facts
- The IMF forecasts UAE real GDP growth of 8% in 2025, the fastest in the Gulf region, with Abu Dhabi growing by 6%and Dubai by 3.4%.
- Property sales in Abu Dhabi increased by over 40% in the first half of 2025, and multiple IPOs attracted strong investor demand, signaling growing economic confidence.
Background
The IMF confirmed that it expects the UAE economy to grow by 5% in 2026. The UAE will have the fastest growth in the Gulf next year, with the IMF forecasting a 4.8% increase in real GDP for 2025. The updated perspective demonstrates the fact that the country remains strong in terms of diversification, sound policy base, and increased investor confidence amid a challenging global environment.
IMF forecasts that the economy of Abu Dhabi will grow by 6% in 2025, with the oil production level boosting its growth, the real estate sector booming, and the services sector continuously developing. Dubai’s economy is expected to grow by 3.4%, driven by strong tourism, logistics, and finance sectors. The data was shared by Dr. Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, during a press conference hosted by the Dubai International Financial Centre (DIFC).
Dr. Azour said that the UAE leads in growth because its non-oil economy stays strong. The government keeps investing and diversifying the economy. Tourism, finance, and real estate are driving this growth, and easing OPEC+ limits will likely increase oil production.
Property sales in Abu Dhabi rose more than 40% in the first half of 2025, showing strong demand from residents and investors. The stock market also drew attention as several IPOs got more interest than expected, showing growing trust in the UAE economy.
The IMF says the UAE’s economy will grow by 5% in 2026. It praises the UAE for managing money well and keeping the economy steady. Through programs such as We the UAE 2031 and ongoing investment in technology and infrastructure, the UAE drives growth while also ensuring stability.
