The International Monetary Fund (IMF) projected a positive outlook for UAE economic growth forecast for 2026, estimating an increase of 5 percent compared to 4 percent for this year.
The Fund’s World Economic Outlook indicated that UAE GDP experienced a growth of 3.8 percent last year.
The UAE is set to be the fastest-growing economy among the Gulf Cooperation Council (GCC) countries this year and is projected to be the second fastest in 2026. With a forecasted growth of 5.6 percent for next year, Qatar will take the lead as the fastest-growing economy.
According to the IMF’s World Economic Outlook, the UAE economy is expected to outpace the overall growth of oil-exporting countries, which are likely to expand by 2.6 percent in 2025 and 3.1 percent in 2026.
Inflation and current account balance projections
Inflation in the UAE is anticipated to remain steady at approximately 2.1 percent this year and 2.0 percent next year.
The UAE is also expected to sustain a healthy current account balance, reaching 6.6 percent in 2025 and 6.4 percent in 2026, as per the IMF’s assessment.
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Regional economic growth in MENA
For the Middle East and North Africa region, the Fund forecasts growth rates of 2.6 percent and 3.4 percent for this year and next, respectively. Meanwhile, the Middle East and Central Asia region is projected to grow by 3 percent and 3.5 percent.
“The Middle East and Central Asia is projected to come out of several years of subdued growth… as the effects of disruptions to oil production and shipping dissipate and the impact of ongoing conflicts lessens. Compared with that in January, the projection is revised downward, reflecting a more gradual resumption of oil production, persistent spillovers from conflicts, and slower-than-expected progress on structural reforms,” it stated.
