UAE economy forecast to grow nearly 10% in 2027, Central Bank Governor says
By Dubai Currents Staff2 min read
The UAE economy is projected to grow by approximately 10 per cent in 2027, up from an expected 1.6 per cent in 2026, according to Khaled Mohamed Balama, Governor of the Central Bank of the UAE and the country’s IMF governor. He made the remark 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, on Thu 15 Oct 2026, 10:33 AM.
Growth forecast for 2027
The expansion is expected to be driven by economic diversification, continued infrastructure investment and increased oil production capacity.
IMF meeting and leadership remarks
Speaking at the meeting, Balama highlighted the UAE’s strong economic fundamentals and its ability to respond to external shocks. The gathering formed part of the 2026 Annual Meetings of the IMF and World Bank Group and was attended by Kristalina Georgieva, Managing Director of the IMF.
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
“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.”
Financial stability, buffers and global cooperation
“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.”
“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.”
“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.
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