Abu Dhabi’s economy to grow by 4.2%; Dubai’s by 3.3% in 2025: IMF

The International Monetary Fund (IMF) forecasts Abu Dhabi’s economy to grow by 4.2% in 2025 and accelerate to 5.8% in 2026. Dubai’s economy is projected to expand by 3.3% in 2025, increasing to 3.5% in 2026.

Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, said, during a media briefing organised by the Dubai International Financial Centre in cooperation with the IMF, that he expects the UAE economy to grow by 4% in 2025.

He attributed the sustained growth forecast for the UAE, despite downward revisions in many other countries, to the strong performance of its non-oil sector, infrastructure investments, and expansion in key areas like real estate and finance. He further anticipates growth to accelerate to 5% in the following year.

Azour emphasised that the GCC states do not have identical economic structures or reserve levels, which makes their response to global market fluctuations varied.

He pointed out that the average growth of the region’s economies (Middle East and North Africa) reached 1.8% in 2024 and is expected to rise to 2.6% in 2025 and 3.4% in 2026.

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