It also said Dubai’s economy is projected to expand by 3.3 per cent in 2025, increasing to 3.5 per cent in 2026.
Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, that he expects the UAE economy to grow by 4 per cent in 2025.
Dubai and Abu Dhabi economy growth
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 per cent 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 per cent in 2024 and is expected to rise to 2.6 per cent in 2025 and 3.4 per cent in 2026.
These figures represent a downward revision from the October 2024 estimates, which had projected growth of 4 per cent for 2025 and 4.2 per cent for 2026.
