The forecast for the two emirates was revealed by Dr. Jihad Azour, Director of the Middle East and Central Asia Department at the IMF.
Dr. Azour said the IMF projects the UAE’s economy to grow by 4.8 per cent in 2025, rising to about 5 per cent in 2026, the highest growth rate among Gulf Cooperation Council (GCC) countries.
UAE IMF forecasts
He explained that the UAE’s high growth rate is mainly driven by service sectors such as tourism, financial services, and real estate.
He also noted that growth in Abu Dhabi in particular is further supported by improved oil production following the relaxation of the OPEC+ agreement, alongside the strong performance of the services and real estate sectors.
Diversification and policy strength
The IMF’s forecast underscores the UAE’s continued momentum in economic diversification and resilience across non-oil sectors.
Tourism and financial services remain key growth engines, while Abu Dhabi’s energy sector recovery provides additional fiscal strength.
The report aligns with broader regional projections, which indicate the UAE’s balanced mix of oil and non-oil activity is positioning it for sustained medium-term growth.
