The World Bank has projected that the UAE economy will grow by 5 per cent in 2026, with growth expected to accelerate slightly to around 5.1 per cent in 2027, underlining the country’s robust economic fundamentals and successful diversification strategy.
The forecast, published in the World Bank’s latest Global Economic Prospects report, represents an upward revision from earlier estimates and places the UAE among the faster-growing economies globally over the medium term.
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Diversification Drives Growth Momentum
According to the World Bank, the UAE’s positive outlook is largely driven by strong non-oil sector performance, reflecting years of sustained investment and structural reforms. Key contributors include:
- Tourism and hospitality
- Trade, logistics, and transport
- Financial services
- Real estate and infrastructure development
These sectors continue to expand as the UAE strengthens its position as a regional hub for commerce, finance, and innovation.
Resilience Amid Global Uncertainty
While the global economy faces persistent challenges including geopolitical tensions, policy uncertainty, and slower productivity growth the World Bank noted that economic resilience has been stronger than previously anticipated in the near term.
Globally, economic growth is expected to remain broadly stable over the next two years, easing to around 2.6 per cent in 2026 before edging up slightly in 2027. However, the World Bank cautioned that long-term global growth prospects remain subdued, with the 2020s on track to become the slowest decade for global expansion since the 1960s.
Positive Regional Outlook
At a regional level, the Gulf Cooperation Council (GCC) is expected to see growth strengthen over the forecast period, supported by diversification efforts, rising investment, and expanding private-sector activity. The World Bank projects GCC growth to rise to about 4.4 per cent in 2026 and 4.6 per cent in 2027.
Growth across the Middle East and North Africa region is also expected to pick up, aided by improving domestic demand and investment conditions.
Confidence in the UAE’s Economic Strategy
The UAE’s projected growth underscores investor confidence in its long-term economic vision, supported by business-friendly reforms, infrastructure spending, and policies aimed at attracting global talent and capital. As global growth remains uneven, the UAE’s ability to sustain strong expansion highlights the effectiveness of its diversification agenda and reinforces its status as one of the Middle East’s most resilient and forward-looking economies.
