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UAE Economy to Grow by 4.8% in 2025 — Regional Leader in Growth Rates

UAE Economy to Grow by 4.8% in 2025 — Regional Leader in Growth Rates

"The IMF projects that the UAE economy will grow by 4.8% in 2025."

January 22, 2026

Growth is expected to reach 5.0% in 2026. This performance is driven by non-oil sectors and restored oil production within OPEC+.

Resilience:

According to the IMF, the UAE shows resilience to global uncertainty and regional conflicts, growing faster than the world average.

Key Drivers:

  • Tourism
  • Construction
  • Financial services

Inflation and Housing:

Inflation is projected at 1.6% in 2025, rising to 2% medium-term. The main pressure comes from rental rates and housing price growth.

Foreign Economic Stability:

The balance of payments is strengthening as non-oil exports grow. The CEPA agreements further strengthen trade ties.

Investment:

Real estate continues to grow, supported by external demand and population growth. Real estate accounts for about 18% of bank assets, with most transactions being cash-based.

Conclusion:

The UAE remains a leader in economic growth rates in the Middle East.