UAE Economic Growth to Slow in 2026, Rebound in 2027

Jun 30, 2026

50 min

Jun 30, 2026 19:32

UAE economy to slow to 1.7% in 2026 before rebounding to 9.8%

## Economic Slowdown Expected

The UAE's economy is projected to experience a slowdown in 2026, with growth anticipated to decrease to 1.7%. This deceleration is attributed to regional factors affecting trade, shipping, and tourism, as well as impacting private sector confidence.

## Strong Rebound Forecasted

Despite the expected slowdown, the UAE Central Bank forecasts a significant economic rebound in 2027, with growth surging to 9.8%. This recovery is expected to be driven by increased oil production, expansion in non-oil sectors, and robust government spending on infrastructure projects.

## Banking Sector Resilience

The UAE's banking sector remains strong, with total banking assets reaching Dh5.56 trillion. The sector benefits from growth in assets, credit, and deposits, alongside strong capital adequacy and improving asset quality.

## Inflation and Economic Stability

Inflation is projected to average 2.3% in 2026, decreasing to 1.9% in 2027, staying below global averages. The UAE's economic outlook is supported by diversified growth drivers, proactive policies, and substantial fiscal buffers, ensuring resilience against external challenges.

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