The united Arab Emirates is poised for continued economic growth, with the World Bank forecasting a 5% expansion in 2026 and 5.1% in 2027. These projections reflect a broader positive trend across the Gulf Cooperation Council and the wider Middle East and North Africa region, despite a global economic outlook that remains subdued. While the global economy shows resilience, the World Bank cautions that the 2020s are on track to be the weakest decade for growth in over sixty years.
The United Arab Emirates’ economy is forecast to grow by 5% in 2026, with a further increase to 5.1% projected for 2027, according to a recent World Economic Outlook report released by the World Bank.
This positive outlook for the UAE is part of a broader trend of growth expected across the Gulf Cooperation Council (GCC) nations, with the report predicting a collective expansion of 4.4% in 2026 and 4.6% in 2027.
The Middle East and North Africa region, including Afghanistan and Pakistan, is also anticipated to see increased economic activity, with growth rates climbing from 3.6% in 2026 to 3.9% in 2027.
The World Bank’s latest assessment indicates that the global economy has demonstrated greater resilience than previously anticipated, despite ongoing trade tensions and policy uncertainties. This resilience is a key factor driving the positive forecasts for the region.
Globally, economic growth is expected to remain relatively stable over the next two years, settling at 2.6% in 2026 before rising to 2.7% in 2027 – a slight upward revision from projections made in June. The United States accounts for approximately two-thirds of this revised growth forecast for 2026, performing better than initially expected.
However, the report cautions that if these forecasts hold true, the 2020s are on track to become the weakest decade for global economic growth since the 1960s.
Slower growth rates are also contributing to a widening gap in living standards worldwide. By the end of 2025, per capita income in most advanced economies had surpassed 2019 levels, while roughly a quarter of developing economies remained below their pre-pandemic benchmarks.
Global growth in 2025 benefited from a surge in trade linked to policy changes and a rapid adaptation of global supply chains. However, this boost is expected to diminish in 2026 as trade slows and domestic demand eases.
Global inflation is projected to decline to 2.6% in 2026, driven by weakening labor markets and falling energy prices. An improvement in global growth is anticipated in 2027 as trade flows normalize and policy uncertainties subside.
“With each passing year, the global economy is becoming less able to grow and more able to withstand policy uncertainty,” said Indermit Gill, Chief Economist of the World Bank Group and Senior Vice President for Development Economics.
Growth in developing economies is expected to slow to 4% in 2026, compared to 4.2% in 2025, before edging up to 4.1% in 2027. This improvement is linked to easing trade tensions, stabilizing commodity prices, improved financial conditions, and increased investment flows.
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