UAE economy will expand by 7.7% in 2027, says IMF

The International Monetary Fund (IMF) has projected that the UAE's real GDP will experience robust growth, reaching 7.7% in 2027, following a 6.2% growth rate in 2025, and is expected to moderate to 3.5% by 2031.

During a press conference in Dubai, Dr Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, highlighted the UAE's proactive response to regional challenges. Since the onset of the conflict in the area, the UAE has introduced a range of measures aimed at safeguarding its citizens, residents, and economy. These actions included creating alternative trade routes and adjusting trade flows in both the oil and non-oil sectors to ensure the uninterrupted movement of goods and commodities.

Azour noted that these initiatives, paired with efforts by other nations to diversify oil export pathways, have helped cushion the economic impact of disruptions such as the closure of the Strait of Hormuz. This strategic approach has also revitalised economic activity in the region.

Looking forward to 2027, Azour expressed optimism about a return to sustained economic growth. He attributed this to the UAE's systematic policies aimed at bolstering the economy and minimising the crisis's local repercussions.

A critical part of this recovery, he remarked, lies in restoring oil and gas production and exports to pre-crisis levels. He underscored that diversifying export channels and developing new transit routes remain key priorities for the UAE and neighbouring Gulf states in reducing risks and maintaining steady trade flows.