According to the International Monetary Fund’s (IMF) World Economic Outlook report released on Tuesday, the UAE economy will grow by 7.7% in 2027. This marks a strong recovery after a weak 2026, driven by the Middle East war.
The IMF thinks that the UAE’s real gross domestic product (GDP) will fall by 3.9% this year and then start to grow again next year. The country had a strong year in 2025, growing by 6.2%, the fastest rate among the six economies in the Gulf Cooperation Council (GCC). The World Bank also predicted last week that the UAE economy would get better quickly, with 9.5% growth in 2027 after a 1.6% drop in 2026. The UAE’s expected drop in 2026 is not as big as those of some other countries in the area. It’s also about the same as Saudi Arabia, the region’s largest economy, which the IMF expects to shrink by 3.3% this year.
The UAE will be one of the best performers in the region in 2027, with a growth rate of 7.7%. This is a lot more than the 6.3% growth that the IMF predicts for the Middle East and Central Asia as a whole. Since the US, Israel, and Iran started their war in the Middle East on February 28, Tehran has used missiles and drones to attack Gulf countries, including the UAE. As a result, the conflict has affected both the oil and non-oil sectors.
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