IMF Upgrades UAE’s 2025 Growth Forecast to 4.8%
The International Monetary Fund (IMF) has raised its forecast for the United Arab Emirates’ economic growth to 4.8% in 2025, up from its previous projection released in April. The revision reflects the UAE’s robust performance across key sectors and its continued momentum in diversification and investment-driven growth.
Continued Momentum into 2026
In its latest World Economic Outlook report, released on Tuesday, the IMF maintained its 2026 growth forecast for the UAE at 5%, consistent with its April estimates. The Fund cited ongoing expansion in non-oil sectors, government investment in digital and green initiatives, and a favorable business environment as primary drivers supporting the country’s medium-term economic outlook.
Regional Growth Strengthens
According to the IMF, growth in the Middle East and Central Asia is expected to accelerate to 3.5% in 2025 and 3.8% in 2026, compared with 2.6% recorded in 2024. The upward revision underscores stronger domestic demand and increased energy exports across several regional economies.
The IMF’s April forecast for the same region projected 3% growth in 2025 and 3.5% in 2026, marking a notable upgrade in the latest assessment.
Global Outlook Improves Modestly
Globally, the IMF raised its growth projections slightly in the October edition of its World Economic Outlook compared to April 2025. It now expects world output to expand by 3.2% in 2025 and 3.1% in 2026, supported by gradual recoveries in trade and investment.
Growth in advanced economies is expected to reach around 1.5%, while emerging markets and developing economies are forecast to expand by just above 4% over the same period.
With its upward revision, the IMF reaffirmed the UAE’s position as one of the region’s fastest-growing and most resilient economies—bolstered by diversification, proactive fiscal policies, and sustained private sector expansion.