UAE economy will see 'counterattack year' in 2027, says minister

The UAE is expected to see a strong economic rebound next year after slower growth linked to the regional war, according to Abdulla Bin Touq Al Marri, UAE Minister of Economy and Tourism.

Speaking at the Future Hospitality Summit World at Madinat Jumeirah, Al Marri acknowledged that the UAE economy is currently experiencing slower growth but described 2027 as a “counter-attack year”, with expectations of a significant rebound.

UAE Set for Strong Economic Rebound

Al Marri said the UAE would return strongly, with a “huge rebound” expected across the economy.

The International Monetary Fund (IMF) has forecast real GDP growth of 3.1 per cent for the UAE. Growth is expected to strengthen in 2027 as tourism, trade, property and transport activity return to more normal levels.

Al Marri also received the FHS Leadership Award during the summit.

UAE Needs More Hotel Rooms

The UAE is aiming to attract 40 million hotel guests by 2031 under its Tourism Strategy. However, regional tensions have affected the country's tourism targets, according to the minister.

The UAE currently has around 216,000 hotel rooms, with approximately 10,000 rooms temporarily out of operation as some properties undergo refurbishment.
These rooms are expected to return to operation over the next six months. However, Al Marri said the existing supply would not be sufficient to meet the country's future tourism ambitions.

UAE Grand Tour to Encourage Longer Stays

Al Marri also highlighted the UAE Grand Tour, a nationwide tourism initiative designed to encourage visitors to explore more of the country's seven emirates.

The minister noted that many tourists currently visit only a few emirates, despite the range of attractions and experiences available across the UAE.

Launched earlier this month, the UAE Grand Tour offers an 11-day, 10-night itinerary featuring curated experiences across the country. Visitors can also book their journey and receive a voucher through the initiative's website without having to use multiple platforms.

Tourism Industry Urged to Join Grand Tour

Al Marri called on tour operators and hospitality businesses to work closely with the ministry and participate in the UAE Grand Tour.

He encouraged tourism and hospitality companies to add their offerings to the programme, helping visitors discover more destinations and potentially extend their stays across the UAE.

The initiative forms part of the country's broader efforts to strengthen tourism and support future economic growth.