S\u00e3o Paulo \u2013 Demonstrating resilience amid global uncertainty, regional conflicts, and oil market volatility, the United Arab Emirates is expected to see economic growth of 4.8% in 2025 and 5% in 2026. The estimates were released Thursday (2) by an IMF team led by economist Said Bakhache, who visited the country and met with local authorities from September 17 to October 1.<\/p>\n\n\n\n
\u201cSupported by sustained diversification and expanding exports, the UAE is projected to grow strongly, well above the global average in 2025,\u201d Bakhache said in a post-visit report. The fund projects global growth of 3% for this year. The UAE\u2019s 2025 expansion is expected to be driven by the non-oil sector, hydrocarbon production recovery, tourism, construction, financial services, and major infrastructure projects.<\/p>\n\n\n\n
The IMF projects UAE inflation at 1.6% this year and around 2% in the medium term. Price pressures are expected mainly from housing, while goods prices will remain moderate. According to the fund, economic risks are balanced, supported by strong sovereign reserves and the country\u2019s economic diversification efforts.<\/p>\n\n\n\n The UAE is expected to remain resilient to global policy uncertainty<\/p>Said Bakhache<\/cite><\/blockquote><\/figure>\n\n\n\n \u201cThe UAE is expected to remain resilient to global policy uncertainty. Ongoing efforts to expand Comprehensive Economic Partnership Agreements will further bolster resilience and support diversification,\u201d Bakhache said, adding that financial markets and capital flows continue to withstand global shocks, reflecting strong investor confidence.<\/p>\n\n\n\n According to the IMF, the UAE\u2019s current account balance strengthened last year due to goods and services exports and slower import growth. The country\u2019s fiscal policy remains prudent, the non-oil primary deficit is expected to gradually improve in the medium term with tax reforms, and the financial sector remains strong and solid, with ample capital and liquidity.<\/p>\n\n\n\n Economist Said Bakhache also highlighted, in his economic analysis, the heating of real estate activity in the UAE, supported by external demand, non-oil and population growth, structural reforms, and the country\u2019s status as a safe and attractive investment destination.<\/p>\n\n\n\n Read more<\/em>: Translated by Guilherme Miranda<\/strong><\/p>\n
UAE: New strategic hub for investments<\/a><\/p>\n\n\n\n