IMF Forecasts 6% Growth for Abu Dhabi and 3.4% for Dubai in 2025 as UAE Leads GCC Economies

IMF Forecasts Strong 2025 Growth for UAE, with Abu Dhabi Leading GCC Region

The International Monetary Fund (IMF) has projected a strong economic outlook for the United Arab Emirates in 2025, with Abu Dhabi expected to grow by 6% and Dubai by 3.4%, placing the UAE at the forefront of economic performance within the Gulf Cooperation Council (GCC) region.

The forecasts were shared by Dr. Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, who noted that the UAE’s overall economy is expected to grow by 4.8% in 2025, with a further rise to 5% in 2026 the highest rate among GCC nations. This robust trajectory reflects the UAE’s strong policy frameworks and its success in diversifying beyond oil dependency.

According to Dr. Azour, the UAE’s high growth rate is primarily driven by its expanding services sectors, including tourism, financial services, and real estate. In Abu Dhabi, the rebound is further strengthened by the relaxation of the OPEC+ oil production caps, allowing the emirate to boost output, alongside a surge in non-oil sector activity particularly in real estate and services.

The IMF's outlook underlines the UAE's economic resilience and its continued leadership in strategic diversification. While Dubai maintains its momentum through global tourism and a vibrant private sector, Abu Dhabi is emerging as a dual engine of growth, balancing energy sector recovery with non-oil sector expansion.

This positive forecast aligns with broader regional trends, reinforcing the UAE’s balanced economic structure and long-term vision. With a strong foundation in policy, infrastructure, and global investment appeal, the nation is positioned for sustained medium-term growth across multiple sectors.