The World Bank has projected steady economic growth for the United Arab Emirates, citing strong non-oil sector performance, continued diversification efforts, and resilient macroeconomic fundamentals. The forecast reflects confidence in the UAE’s ability to sustain momentum despite global economic uncertainties and fluctuating energy markets.
According to the outlook, non-oil activities remain the primary driver of growth, supported by expansion in sectors such as tourism, logistics, financial services, real estate, and technology. Ongoing government reforms aimed at improving the business environment, attracting foreign investment, and supporting entrepreneurship are expected to further strengthen economic activity. Initiatives linked to digital transformation and innovation continue to play a central role in boosting productivity and competitiveness.
The World Bank also highlighted the UAE’s prudent fiscal management and strong policy framework as key factors underpinning economic stability. Strategic public investments, coupled with targeted social and infrastructure spending, are helping balance growth with long-term sustainability. While oil revenues remain an important component of the economy, diversification efforts have reduced vulnerability to external shocks and commodity price volatility.
Inflation is expected to remain manageable, supported by effective monetary coordination and supply-side measures. The report notes that employment growth and rising consumer confidence are likely to contribute positively to domestic demand in the coming period.
However, the World Bank cautioned that global risks—including geopolitical tensions, slower global growth, and financial market volatility—could pose challenges. Continued reform momentum and adaptive policy responses will be essential to maintain progress.
Overall, the forecast reinforces the UAE’s position as one of the most resilient and dynamic economies in the region. By maintaining a focus on diversification, innovation, and global integration, the UAE is well placed to achieve sustainable growth and strengthen its role as a regional and international economic hub.
