UAE Economy Leads Gulf Growth in 2025, IMF Says

The UAE economy delivered the strongest performance among Gulf Cooperation Council countries in 2025, according to the International Monetary Fund, supported by robust growth in Abu Dhabi and continued progress in economic diversification and investment in key sectors.

The IMF’s Middle East and Central Asia director noted that the UAE economy benefited from expanding non-oil activities, an improved business environment, and rising high-quality investment, strengthening resilience to external shocks.

Technology and Artificial Intelligence

He highlighted technology and artificial intelligence as central pillars for future growth across the Gulf, with these sectors expected to boost innovation and productivity, reinforcing the competitiveness of the UAE economy.

Financial Sector and Market Deepening

The growing role of the financial sector—particularly fintech and market deepening—was cited as a key driver in expanding financing channels and improving capital allocation efficiency.

Global Outlook and Uncertainty

While the global economy has maintained acceptable growth despite shocks, elevated uncertainty linked to trade policies, tariffs, and geopolitical developments continues to pose downside risks over time.