Today: 23 May 2025
2 May 2025
2 mins read

Abu Dhabi, Dubai Set for Strong 2025 Growth 

According to IMF forecast, Abu Dhabi’s economy is set to grow by 4.2% and Dubai by 3.3% in 2025, set to lead economic momentum amid global slowdown 

The International Monetary Fund (IMF) has projected that the United Arab Emirates’ economy will grow by 4% in 2025, underpinned by robust non-oil sector performance and continued infrastructure investment. The IMF’s latest forecast reflects the UAE’s economic resilience, particularly in comparison to other regions facing downward revisions in growth expectations. 

Abu Dhabi is expected to outpace the national average, with a projected growth of 4.2% in 2025, climbing further to 5.8% in 2026. Meanwhile, Dubai’s economy is forecast to expand by 3.3% in 2025 and inch upward to 3.5% the following year. These figures reflect a steady and sustainable recovery path for the UAE’s two largest emirates, reinforcing the country’s position as an economic hub in the Gulf. 

Non-oil strength drives optimism 

Speaking during a media briefing hosted by the Dubai International Financial Centre in partnership with the IMF, Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, noted that the UAE’s projected growth defies a broader regional trend of economic deceleration. He pointed to the strength of the UAE’s non-oil sectors—particularly real estate, financial services, and tourism—as a key driver of this sustained momentum. 

Azour highlighted that ongoing investment in infrastructure and diversified economic planning have helped buffer the UAE against external shocks, including fluctuations in oil prices and global economic uncertainty. “The UAE has demonstrated an effective diversification strategy that continues to bear fruit,” he said. 

This performance comes at a time when the IMF has revised its broader outlook for the Middle East and North Africa (MENA) region downwards. In its October 2024 projections, the Fund had estimated regional growth of 4% for 2025 and 4.2% for 2026. These figures have now been adjusted to 2.6% and 3.4% respectively. 

Varied growth across the GCC 

Azour also underscored the diversity within the Gulf Cooperation Council (GCC), noting that differences in economic structure and sovereign wealth levels mean that each country is responding to global challenges in its own way. While some oil-producing nations are experiencing sluggishness due to OPEC+ output curbs and softer commodity prices, others like the UAE have made significant headway in reducing oil dependency. 

The UAE’s fiscal prudence, strategic reforms, and investor-friendly policies have further consolidated its status as a regional safe haven for capital and talent. Mega-events, tourism rebounds, and expanding global partnerships have all contributed to a more balanced and resilient economic outlook. 

Looking ahead 

For 2026, the IMF expects the UAE’s overall economy to accelerate to a 5% growth rate, further evidence that the country’s long-term economic vision is gaining traction. The growth outlook aligns with the UAE’s broader goals under “We the UAE 2031”, the national development strategy that seeks to double the nation’s GDP within a decade. 

While global headwinds remain—from geopolitical tensions to financial market volatility—the UAE’s diversification, competitive regulatory environment, and targeted public spending have positioned it to maintain steady economic progress in the years ahead. 

In an uncertain global landscape, the UAE continues to stand out as a beacon of measured reform and strategic foresight. 

Previous Story

Gold Glitters on Akshaya Tritiya, Sees Rs 12,000 Crore Worth Sales

Next Story

ATM 2025 sets new standard 

Latest from -Top News

UAE bakery aid reaches Gaza

The convoy is a crucial component of the UAE’s ongoing humanitarian strategy under Operation Chivalrous Knight 3, which prioritises urgent food aid. A major humanitarian relief convoy has successfully entered the Gaza

Tech giants unite for Stargate UAE

This marks the beginning of a strategic partnership involving G42, OpenAI, Oracle, NVIDIA, Cisco, and SoftBank Group, all coming together under the banner of international AI leadership. In a landmark announcement that

‘Make It in Emirates’ boosts Dh11b projects

The event welcomed more than 122,000 visitors — a 20-fold increase over its previous edition — and drew participation from over 720 local and international industrial, financial, and technology entities. The fourth

UAE leads Arab health push in Genevaa

UAE Health Minister Al Owais highlights Arab unity at WHO Assembly, reaffirming commitment to global health, crisis response, and sustainable healthcare innovation for the future. The UAE underscored its regional leadership in

Will tackle terrorism together: UAE backs India 

The UAE reaffirmed strong support for India’s fight against terrorism during a high-level Indian delegation visit, highlighting shared security goals and condemning cross-border terrorism after the Pahalgam attack. In a powerful show
Go toTop

Don't Miss

Coolest Winter boosts Dubai hotel industry by Dh1.8b

The campaign raised the revenues of hotel establishments to AED1.8

UAE stresses on two-state solution at UNSC meet on Palestine

This came in a written statement submitted by the UAE