The UAE economy is projected to grow by approximately 10 per cent in 2027, accelerating from an expected 1.6 per cent in 2026, supported by economic diversification, infrastructure investment and increased oil production capacity, according to the Governor of the Central Bank of the UAE.
Khaled Mohamed Balama, Governor of the Central Bank of the UAE and the UAE’s Governor at the International Monetary Fund (IMF), said the country’s economic outlook remains positive despite regional geopolitical challenges and heightened global uncertainty.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Speaking at a high-level meeting of central bank governors and finance ministers from the Middle East, North Africa, Afghanistan and Pakistan region with the IMF in Bangkok, Thailand, Balama highlighted the UAE’s strong economic fundamentals and ability to respond to external shocks.
The meeting, held as part of the 2026 Annual Meetings of the IMF and World Bank Group, was attended by Kristalina Georgieva, Managing Director of the IMF.
UAE doubles its economy every decade
Hamed Ali, CEO of Dubai Financial Market, said the UAE has doubled the size of its economy every decade, attributing the achievement to the country’s economic diversification strategy.
“We double the size of our economy in the UAE every ten years because we have embraced economic diversification,” he said
Adding that the UAE has established itself as a leading global hub for investment and long-term partnerships, serving as a bridge between Eastern and Western markets and rapid changes in the global economy require clearer economic forecasts, stronger engagement with stakeholders and a broader range of financial instruments, He urged financial institutions to remain agile and adapt to changing circumstances, turning challenges into opportunities for growth.
Economic diversification drives growth
Balama said the UAE’s growth outlook is supported by the rapid expansion of non-oil economic activities and continued investment in infrastructure projects.
He added that increased oil production capacity following the UAE’s withdrawal from OPEC is expected to contribute to stronger economic growth in 2027.
The Governor described the UAE as a leading model of structural economic resilience, supported by successful diversification policies, sound economic frameworks and sustained investment in technology and human capital.
Strong financial buffers support investor confidence
Balama highlighted the UAE’s robust fiscal position, low public debt levels and substantial sovereign assets as key factors supporting economic stability.
He said these strengths continue to reinforce investor and market confidence despite regional challenges.
The Governor emphasised that financial resilience depends not only on the availability of reserves but also on how quickly economies can respond and adapt to changing conditions.
UAE highlights importance of economic resilience
Balama said the global economy continues to face multiple interconnected shocks that are testing financial systems and economic stability.
He stressed the importance of developing financial buffers in advance and maintaining policy frameworks that enable economies to respond effectively to unexpected developments.
The UAE’s experience, he said, demonstrates how economic diversification and investment in technology and human capital can strengthen long-term resilience.
International cooperation key to global stability
Balama also called for stronger international cooperation to address economic challenges arising from geopolitical tensions.
He warned that risks to the global economy remain elevated, highlighting the importance of coordinated efforts to protect global growth and reduce inflationary pressures.
The Governor also acknowledged the IMF’s role in supporting financial stability and economic development across the region.
The remarks from Balama and Ali highlight the UAE’s continued emphasis on economic diversification, financial stability and international investment as drivers of long-term growth.
Source: Khaleej Times