UAE Economic growth Forecast Upgraded by Central bank
Abu Dhabi, UAE – The Emirates Central Bank has revised its economic growth forecast for the United Arab Emirates, now projecting a 4.9% expansion in 2025 – an increase from the 4.4% predicted earlier this year. The upward revision signals continued economic momentum, with anticipated growth reaching 5.3% in 2026.
This optimistic outlook reflects strength in both oil and non-oil sectors. The UAE’s non-oil GDP is expected to grow by 4.5% in 2025 and 4.8% in 2026, while the oil and gas sector is forecast to expand by 5.8% and 6.5% respectively, benefiting from adjustments to OPEC+ production shares. The revised forecasts come as the UAE approved a record national budget of 71.5 billion dirhams (approximately $19.5 billion USD) for the fiscal year 2025 in October 2024.
The Central Bank attributes the positive trajectory to stable liquidity conditions, bolstered by healthy deposits and sustained credit growth. The financial outlook for the nation remains positive in the medium term, supported by a robust banking system with strong capital and improving asset quality.
Despite expectations for relatively stable oil prices, the bank anticipates increased oil revenues due to the UAE’s revised oil production quota within the OPEC+ framework. The report highlights the overall health of the UAE economy and its capacity for continued expansion in the coming years.
