The IMF projects the UAE economy will grow 7.7% in 2027, 2.4 percentage points higher than its April forecast, citing the country's substantial financial buffers, advanced infrastructure and technological capabilities. The projection was presented at a press conference organised by the Dubai International Financial Centre (DIFC) with the IMF, where Jihad Azour, Director of the IMF's Middle East and Central Asia Department, presented findings from the October 2026 Regional Economic Outlook. The report says continued AI investment could add about 0.5 percentage points to the UAE's annual growth, while AI adoption could lift growth across the Middle East and Central Asia by 0.1 to 0.6 percentage points over the medium term. It also projects average inflation across GCC countries falling to 2.4% in 2027 and about 2% from 2028. The IMF has approved about US$48 billion in financing for the region since 2020.
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