The UAE economy is set to maintain strong momentum, with the World Bank projecting growth of 5 percent in 2026, rising to 5.1 percent in 2027, according to its latest Global Economic Prospects report released today.
The forecast places the UAE among the faster growing economies globally, reflecting resilience amid ongoing trade tensions and policy uncertainty. The World Bank noted that global economic conditions have proven more robust than expected, prompting upward revisions to its outlook.
Worldwide growth is now projected at 2.6 percent in 2026 and 2.7 percent in 2027, slightly higher than earlier estimates. Much of this improvement is driven by stronger than anticipated performance in the United States, which accounts for nearly two thirds of the upgrade to the global forecast.
Despite this resilience, the World Bank warned that the current decade is on track to be the weakest period for global growth since the 1960s. Slower expansion is also widening income gaps, with many developing economies still lagging behind pre 2019 per capita income levels.
At a regional level, growth across Gulf Cooperation Council states is expected to reach 4.4 percent in 2026 and 4.6 percent in 2027. The broader Middle East, North Africa, Afghanistan and Pakistan region is forecast to grow 3.6 percent in 2026, accelerating to 3.9 percent the following year.
Global inflation is projected to ease to 2.6 percent in 2026, supported by softer labour markets and lower energy prices. The World Bank expects growth to pick up further in 2027 as trade flows stabilise and policy uncertainty recedes.
News Source: Emirates News Agency
