IMF Lifts UAE 2027 Growth Forecast to 7.7% on AI and Fiscal Buffers
The International Monetary Fund has upgraded its economic growth forecast for the UAE to 7.7% for 2027, marking a 2.4 percentage point increase over previous projections issued last April. Financial institutions, policymakers, and regional investors are tracking the upward revision, which was announced during a press conference at the Dubai International Financial Centre in cooperation with the IMF.
Strategic Investments and Artificial Intelligence Drive Upward Revision
Dr. Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, presented the findings from the October 2026 Regional Economic Outlook for the Middle East and Central Asia under the theme “Resilience in the Face of Challenges: Diverging Economic Outlooks in the Middle East and North Africa.”
During the briefing, the IMF highlighted that the UAE maintains substantial financial buffers, providing necessary flexibility to deploy fiscal policies that support economic activity within a credible medium-term framework preserving fiscal sustainability. The report also emphasized the importance of ongoing investments in infrastructure development, supply-chain efficiency strengthening, and business continuity support.
Regional economies have demonstrated resilience in managing economic crises by leveraging policies and experiences developed over recent years, including measures deployed during the COVID-19 pandemic to maintain economic activity and support affected sectors. The UAE stands among the nations best positioned to benefit from rapid developments in artificial intelligence, supported by its prior investments, advanced infrastructure, and technological capabilities. Continued investment in artificial intelligence could add approximately 0.5 percent to economic output. The press conference concluded with a panel discussion featuring economists, policymakers, and private-sector leaders.
