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    Home » IMF sees 4.8% growth, Abu Dhabi at 6%
    Finance

    IMF sees 4.8% growth, Abu Dhabi at 6%

    Arabian Media staffBy Arabian Media staffOctober 29, 2025No Comments5 Mins Read
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    UAE economy leads the charge: IMF sees 4.8% growth, Abu Dhabi at 6%

    Image credit: WAM/Website

    The UAE is consolidating its position as one of the world’s most dynamic and resilient economies, with the International Monetary Fund (IMF) forecasting that it will deliver the fastest growth in the Gulf region in 2025. Despite a challenging global backdrop marked by geopolitical uncertainty and uneven recovery, the UAE continues to attract strong investment inflows and deliver solid performance across key sectors.

    According to the IMF, the country’s real GDP is now expected to expand by 4.8 per cent in 2025, up from earlier projections, with growth accelerating further to 5 per cent in 2026. The upgraded outlook underscores the UAE’s success in maintaining momentum through diversification, sound policy, and investor confidence.

    Read more-UAE investors bullish on real estate, tech, and energy, survey reveals

    The IMF projects Abu Dhabi’s economy will expand by around 6 per cent in 2025, while Dubai is expected to grow by 3.4 per cent, according to a WAM report quoting Dr Jihad Azour, Director of the Middle East and Central Asia Department at the IMF. The data was shared during a press conference hosted by the Dubai International Financial Centre (DIFC) in collaboration with the Fund, under the title “IMF Regional Economic Outlook: Middle East and North Africa Report.”

    Dr Azour said the UAE’s growth leadership within the Gulf Cooperation Council (GCC) reflects the resilience of its non-oil sectors, particularly tourism, financial services, and real estate, alongside the benefits of improved oil production as OPEC+ supply restrictions ease.

    He noted that Abu Dhabi’s economy continues to gain from both rising oil output and a strong performance in the services and real estate sectors. Dubai, meanwhile, remains buoyed by its global role as a tourism and financial hub, helping sustain balanced nationwide growth.

    Diversification driving growth momentum

    The UAE’s economic resilience continues to be anchored in its diversification strategy. Over the past year, non-oil sectors such as tourism, finance, logistics, and real estate have emerged as key engines of growth.

    In Abu Dhabi, property transactions surged by more than 40 per cent in the first half of 2025, underlining robust demand from investors and residents alike. The strong real estate activity also reflects population growth, expanding infrastructure, and confidence in the market’s long-term fundamentals.

    “The UAE offers investors a rare blend of growth and stability. It’s a market where you can seek alpha while also enjoying shelter from global volatility,” said Josh Gilbert, market analyst at eToro. “Corporate earnings remain strong, IPO activity is booming, and local markets like the ADX and DFM are near record highs. This performance is underpinned by solid fundamentals and rising investor confidence.”

    IPO boom highlights investor confidence

    The country’s vibrant equity market continues to capture regional and global capital, as a string of initial public offerings (IPOs) in 2025 drew heavy oversubscription. The surge in listing activity, spanning sectors from logistics to energy, reflects deep investor trust in the UAE’s economic trajectory and in the operational strength of its companies.

    Supported by solid balance sheets, generous dividend payouts, and sustained government investment, UAE corporations are increasingly viewed as resilient plays amid global market uncertainty. This sentiment is reinforced by a young, expanding population and continued policy stability.

    “Abu Dhabi’s 6 per cent growth forecast isn’t just a number,” Gilbert added. “It’s a reflection of a confident, diversified economy that continues to outperform expectations. The UAE’s combination of high growth, diversification, and policy stability makes it a market global investors can’t afford to overlook.”

    In its latest World Economic Outlook (WEO), the IMF lifted its forecast for the UAE’s real GDP growth to 4.8 per cent for 2025, compared with earlier projections released in April. It also reaffirmed its 2026 growth estimate of 5 per cent, noting that the UAE’s economic fundamentals remain among the strongest globally.

    The Fund projects global growth to slow modestly from 3.3 per cent in 2024 to 3.2 per cent in 2025, and 3.1 per cent in 2026, as advanced economies expand at around 1.5 per cent and emerging markets at just over 4 per cent. Against this backdrop, the Middle East and Central Asia region is set to accelerate from 2.6 per cent in 2024 to 3.5 per cent in 2025 and 3.8 per cent in 2026, a half percentage point higher than previous estimates.

    The IMF also urged policymakers globally to sustain credibility through transparent fiscal management, preserve central bank independence, and continue implementing structural reforms to boost productivity and investor confidence.

    The UAE’s macroeconomic performance continues to stand out, supported by stable fiscal policy, strong capital markets, and ambitious national strategies such as We the UAE 2031.

    Government-led investments in technology, energy transition, and logistics infrastructure are expected to sustain momentum into the next decade.

    Market analysts say that this alignment of policy, investment, and diversification is positioning the UAE as one of the most attractive global destinations for capital. With both Abu Dhabi and Dubai expanding above global averages, the country is set to remain a regional economic powerhouse and a safe haven for investors seeking growth with resilience.






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