UAE economy set to grow nearly 10% in 2027, Central Bank Governor says

The UAE economy is projected to grow by approximately 10 per cent in 2027, accelerating from an expected 1.6 per cent growth in 2026, according to Khaled Mohamed Balama, Governor of the Central Bank of the UAE.

The forecast is supported by economic diversification, infrastructure investment and increased oil production capacity.

Balama said the country's economic outlook remained positive despite regional geopolitical challenges and growing uncertainty in the global economy.

He shared these views during a high-level meeting of central bank governors and finance ministers from the Middle East, North Africa, Afghanistan and Pakistan region with the International Monetary Fund (IMF) in Bangkok, Thailand.

The meeting was held as part of the 2026 Annual Meetings of the IMF and World Bank Group and was attended by IMF Managing Director Kristalina Georgieva.

UAE Has Doubled Its Economy Every Decade

Hamed Ali, CEO of Dubai Financial Market, highlighted the UAE's economic transformation, saying the country had doubled the size of its economy every 10 years through its economic diversification strategy.

He said the UAE had established itself as a leading global investment hub, attracting long-term partnerships and connecting markets across the East and West.
Ali also emphasised the need for financial institutions to adapt to rapid changes in the global economy.

He called for clearer economic forecasts, stronger engagement with stakeholders and a wider range of financial instruments to help businesses and investors navigate uncertainty.

He urged financial institutions to remain agile and turn economic challenges into opportunities for growth.

Economic Diversification and Infrastructure Investment to Drive Growth

Balama said the UAE's growth outlook was supported by the continued expansion of non-oil economic activities and sustained investment in infrastructure projects.

He added that increased oil production capacity following the UAE's withdrawal from OPEC was expected to contribute to stronger economic growth in 2027.

According to the Governor, the country's economic resilience reflects successful diversification policies, sound economic frameworks and continued investment in technology and human capital.

These factors are helping the UAE strengthen its position as a competitive global economy while reducing its dependence on traditional sources of growth.

Strong Financial Reserves Support Investor Confidence

Balama highlighted the UAE's strong fiscal position, relatively low public debt levels and substantial sovereign assets as important foundations of economic stability.

He said these financial strengths continued to support investor confidence despite regional geopolitical risks and uncertainty in international markets.

The Governor also stressed that economic resilience depends on more than the availability of financial reserves. The ability to respond quickly and adapt to changing circumstances is equally important.

Maintaining strong financial buffers and effective economic policies can help protect the economy from unexpected external shocks.

UAE Emphasises the Importance of Economic Resilience

Balama noted that the global economy was facing multiple interconnected challenges that were testing financial systems and economic stability.

He emphasised the importance of preparing financial buffers in advance and maintaining policy frameworks that allow governments and financial institutions to respond effectively to sudden disruptions.

The UAE's experience, he said, demonstrates how economic diversification and investment in technology and human capital can strengthen long-term resilience.

These measures are particularly important as countries navigate changing market conditions, geopolitical tensions and uncertainty over global economic growth.

International Cooperation Needed to Protect Global Growth

Balama also called for stronger international cooperation to address economic challenges arising from geopolitical tensions and other global risks.

He warned that risks to the global economy remained elevated and stressed the need for coordinated action to protect economic growth and ease inflationary pressures.

The Governor acknowledged the IMF's role in supporting financial stability and economic development across the region.

His remarks, alongside those of Dubai Financial Market CEO Hamed Ali, highlighted the UAE's continued focus on economic diversification, financial stability and international investment as key drivers of sustainable long-term growth.