IMF expects Abu Dhabi economy to grow by 6%, Dubai by 3.4% in 2025

The International Monetary Fund (IMF) expects Abu Dhabi to post economic growth of around 6%, and Dubai to record growth of 3.4% during the current year 2025.

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The forecast for the two emirates was revealed by Dr Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, during a press conference organised by the Dubai International Financial Centre (DIFC) in cooperation with the Fund, under the title "IMF Regional Economic Outlook: Middle East and North Africa Report."

Dr Azour said the IMF projects the UAE's economy to grow by 4.8% in 2025, rising to about 5% in 2026, the highest growth rate among Gulf Cooperation Council (GCC) countries, following the strong performance of the UAE economy this year.

He explained that the UAE's high growth rate is mainly driven by service sectors such as tourism, financial services, and real estate. He also noted that growth in Abu Dhabi in particular is further supported by improved oil production following the relaxation of the Opec+ agreement, in addition to the strong performance of the services and real estate sectors.

The International Monetary Fund (IMF) said that economic activity in the Mena region and Pakistan has been stronger than expected, projecting a growth of 3.2% in 2025, up from 2.1% in 2024, and higher than its April forecast.