The World Bank expects the UAE economy to grow by 4.9% in 2026 and 2027

Abu Dhabi, June 19/ WAM/ The World Bank expected the economic growth in the UAE in its upward direction to 4.6% in 2025, and settles at 4.9% during the years 2026 and 2027.
The World Bank stressed that the non -oil sectors in the UAE continue to turn as a major engine for growth, as it is expected to achieve a growth rate of 4.9% in 2025.
According to the report of the economic developments of the Gulf states issued by the bank, which is based on the available information until June 1, it is expected that economic growth in the Gulf Cooperation Council countries will witness an increase in the medium term up to 3.2% in 2025 and 4.5% in 2026.
According to the World Bank, strong expansion in non -oil sectors contributes to the growth achieved by the economies of the Gulf states.
According to the latest version of the economic developments report for the Gulf states, the region witnessed a remarkable economic growth of 1.7% in 2024, compared to 0.3% in 2023.
According to the report, the non -oil sector continued to show its ability to withstand, an increase of 3.7%, and contributed to achieving this growth significantly both special consumption, investment, and structural reforms that were implemented in the Gulf Cooperation Council countries.
In Bahrain, growth is expected to stabilize at 3.5% in 2025, while economic growth in Kuwait is expected to recover significantly and reaches 2.2% in 2025.
It is expected that the pace of growth in the Sultanate of Oman will gradually accelerate to 3% in 2025 compared to 1.7% in 2024, 3.7% in 2026, and 4% in 2027.
The report expects the economic growth in Qatar to remain stable at 2.4% in 2025 compared to 2.6% in 2024, before its pace accelerated to an average of 6.5% in 2026-2027.
In the Kingdom of Saudi Arabia, it is expected-according to the World Bank report-economic growth will continue to recover to 2.8% in 2025 and an average of 4.6% in 2026-2027 will continue.
Meanwhile, the World Bank report noted the challenges related to the uncertainty that surrounds global trade, as the risk of global economic slowdown still has negative effects on the region.
He recommended to accelerate the pace of reforms aimed at diversifying economic activity and promoting regional trade, to alleviate these risks in the Gulf Cooperation Council countries.
Safaa al -Tayyib al -Kouqly, the regional director of the Gulf Cooperation Council states at the International Bank, said that the Gulf Cooperation Council states to withstand in the face of uncertainty on the global scale, and their continuation in enhancing economic diversification activities, confirming their strong commitment to achieving long -term prosperity.
She added that the strategic policies to support public finances, targeted investments, a strong focus on innovation and entrepreneurship, and the creation of job opportunities for young people, is a maximum necessity to maintain growth and stability.
The World Bank’s report issued entitled “smart spending and stronger economic outcomes: public financial policies for the prosperity of the Gulf Cooperation Council states” will discuss the effectiveness of public financial policies in achieving stability in the macroeconomic and encouraging growth.
This issue is of special importance, given that the fluctuations in oil prices constitute a source of pressure on the general budget in many countries of the region.
The report concludes that government spending in the Gulf Cooperation Council countries region contributed to the effective stability of economies, especially during the recession periods.
The results show that increasing public financial expenditures by one unit leads to an increase in non-oil product by 0.1-0.45 units in the region.

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