(MENAFN- Brazil-Arab News Agency (ANBA)) São Paulo – Demonstrating resilience amid global uncertainty, regional conflicts, and oil market volatility, the United Arab Emirates is expected to see economic growth of 4.8% in 2025 and 5% in 2026. The estimates were released Thursday (2) by an IMF team led by economist Said Bakhache, who visited the country and met with local authorities from September 17 to October 1.

“Supported by sustained diversification and expanding exports, the UAE is projected to grow strongly, well above the global average in 2025,” Bakhache said in a post-visit report. The fund projects global growth of 3% for this year. The UAE's 2025 expansion is expected to be driven by the non-oil sector, hydrocarbon production recovery, tourism, construction, financial services, and major infrastructure projects.

The IMF projects UAE inflation at 1.6% this year and around 2% in the medium term. Price pressures are expected mainly from housing, while goods prices will remain moderate. According to the fund, economic risks are balanced, supported by strong sovereign reserves and the country's economic diversification efforts.

“The UAE is expected to remain resilient to global policy uncertainty. Ongoing efforts to expand Comprehensive Economic Partnership Agreements will further bolster resilience and support diversification,” Bakhache said, adding that financial markets and capital flows continue to withstand global shocks, reflecting strong investor confidence.

According to the IMF, the UAE's current account balance strengthened last year due to goods and services exports and slower import growth. The country's fiscal policy remains prudent, the non-oil primary deficit is expected to gradually improve in the medium term with tax reforms, and the financial sector remains strong and solid, with ample capital and liquidity.

Economist Said Bakhache also highlighted, in his economic analysis, the heating of real estate activity in the UAE, supported by external demand, non-oil and population growth, structural reforms, and the country's status as a safe and attractive investment destination.

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UAE: New strategic hub for investments

Translated by Guilherme Miranda

©Giuseppe Cacace/AFP

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