World Bank forecasts 5% growth for UAE economy in 2026

The World Bank has projected robust economic growth for the United Arab Emirates, forecasting an expansion of 5 per cent in 2026, followed by a further acceleration to 5.1 per cent in 2027. The outlook, cited by Emirates News Agency (WAM), a partner of TV BRICS, underscores the country’s strong macroeconomic fundamentals and the effectiveness of its long-term development strategy.

Across the Gulf Cooperation Council, economic growth is expected to reach 4.4 per cent in 2026 and rise to 4.6 per cent in 2027, reflecting steady regional performance and ongoing investment in non-oil sectors.

The World Bank also anticipates positive momentum across the Middle East and North Africa, with growth projected at 3.6 per cent in 2026 and strengthening to 3.9 per cent in 2027. According to the report, easing inflationary pressures and a gradual recovery in trade are expected to support economic activity throughout the region.

At the global level, inflation is forecast to moderate to 2.6 per cent in 2026, creating more favourable conditions for investment and consumption. The World Bank expects global growth to gain further momentum in 2027 as trade flows stabilise.

The report highlights the importance of productivity growth, a stable business environment and sustained investment as key drivers of long-term development. In this context, the UAE and other Gulf economies are well positioned to strengthen their role as engines of regional growth.

Photo: andreswd / iStock