UAE's economy leads growth in Gulf region in 2025: IMF

Dr. Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), said that the UAE economy posted the best performance among GCC countries in 2025.

Dr. Azour noted that growth in Abu Dhabi’s economy was the strongest driver of the UAE’s overall performance, highlighting the country’s continued efforts to strengthen economic diversification and invest in vital sectors.

In statements to the Emirates News Agency (WAM) on the sidelines of the first day of Abu Dhabi Finance Week, he said that investment in technology and artificial intelligence represents a central trend for GCC countries.

He explained that investment in the technology and AI sector is one of the key elements GCC states are focusing on in the coming years, describing it as a very promising sector.

He also affirmed the growing role of the financial sector in the Gulf, saying, “The role of the financial sector in GCC countries is also increasing, whether in areas related to fintech or in deepening financial markets.”

Azour pointed to major transformations in the global economy stemming from changes in economic policies, especially trade policies involving imposed tariffs, as well as geopolitical developments in more than one region of the world.

He said that despite shocks, the global economy has maintained an acceptable level of growth, while uncertainty and caution remain very high, factors that typically have negative effects on the economy over time.

He added that 2026 will be very important and will require close monitoring of the effects of economic policies on inflation, economic activity, trade movement, and financial markets.

Azour noted that the Middle East region has managed to maintain stable performance despite global challenges.

He added that this improvement is due to three main reasons: first, the continued strong performance of the non-oil sector in Gulf countries; second, higher oil production in GCC states; and third, the ability of oil-importing countries to benefit from improved economic activity, tourism, and trade.

WAM