The International Monetary Fund (IMF) expects the UAE economy to grow by 7.7 percent in 2027, 2.4 percentage points higher than its April forecast.
The IMF pointed to the country’s substantial financial buffers, advanced infrastructure and technological capabilities as factors strengthening its readiness for future growth.
Dr. Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, presented the findings of the October 2026 Regional Economic Outlook at a press conference organised by the Dubai International Financial Centre (DIFC) in cooperation with the IMF. A panel of policymakers, economists and private-sector leaders followed.
The report said the UAE’s financial buffers give it room to use fiscal policy to support activity within a credible medium-term framework that preserves sustainability. It also stressed the value of investment in infrastructure, supply-chain efficiency and business continuity.
Azour said the UAE is among the countries best placed to benefit from artificial intelligence, thanks to earlier investments and strong infrastructure. Continued AI investment could add about 0.5 percentage points to annual growth, he noted. Across the Middle East and Central Asia, AI adoption could lift annual growth by between 0.1 and 0.6 percentage points over the medium term, depending on each country’s readiness.
On prices, the report projected average inflation across the Gulf Cooperation Council to ease to 2.4 percent in 2027 and settle near 2 percent from 2028, helped by falling commodity prices and fiscal discipline.
The IMF also called for export and market diversification, alternative trade corridors and stronger regional integration to build resilience against external shocks. It added that investment in education, skills and labour market flexibility would support productivity and diversification.
Since 2020, the IMF has approved about US$48 billion in financing for the region and delivered 437 technical assistance projects across 31 countries in fiscal year 2026.
News Source: Emirates News Agency
