UAE set to power GCC’s boom

Powered by surging non-oil activity in the UAE and Saudi Arabia, the GCC’s gross domestic product is projected to expand by 4.4 per cent in 2026, according to ICAEW’s Q4 2025 Economic Insight. Drawing on analysis from Oxford Economics, the report underscores the UAE's accelerating transformation into a regional economic engine, driven by private-sector dynamism, strategic fiscal stimulus, and long-term diversification.

- Issac John [e-mail]

ICAEW forecasts the UAE’s GDP to rise 5.6 per cent in 2026, cementing its position as one of the Gulf’s fastest-growing economies. Tourism, trade, logistics, real estate, and financial services are expected to remain the primary drivers of this expansion, supported by strong population growth, a buoyant labour market, and sustained domestic demand. Major government investment programmes aligned with the “We the UAE 2031” strategy further anchor long-term momentum.

Dubai has already demonstrated the resilience of the UAE’s non-oil economy. The emirate posted growth of 4.4 per cent in the first half of 2025, propelled by trade, transport, hospitality, and financial services. Meanwhile, the federal government's 2026 budget plans reflect a significant uplift in spending on infrastructure, technology, digital transformation, and cross-border economic corridors, reinforcing the country’s forward-looking development agenda.

Abu Dhabi’s performance