Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
The UAE’s economy is projected to grow 4.1% in 2027 and 4.2% in 2028, according to the latest World Bank projections, pointing to a steady recovery after a softer 2026.
According to the World Bank’s June 2026 Global Economic Prospects report, the UAE economy is estimated to have grown 6.2% in 2025, following growth of 6.6% in 2024 and 4.3% in 2023.
The World Bank forecast UAE growth at 2.4% in 2026, marking a moderation from the strong pace recorded in 2024 and 2025. The slowdown reflects the impact of regional disruptions to energy and commodity flows, which have affected the broader global and regional outlook.
However, the projection for a rebound to above 4% in 2027 and 2028 suggests that the slowdown is expected to be temporary.
The UAE’s medium-term growth outlook remains positive, with projected expansion in 2027 and 2028 supported by the expected normalisation of energy supplies, recovery in trade, and easing financial conditions globally.
The World Bank said global growth is projected to slow to 2.5% in 2026 from 2.9% in 2025. However, activity is expected to firm in 2027 and 2028 as energy supplies recover, monetary easing resumes, and trade strengthens.
Among major economies, the United States is projected to grow 2.2% in 2026, 2.1% in 2027 and 2% in 2028. China’s growth is projected at 4.2% in 2026, 4.3% in 2027 and 4.2% in 2028. India, whose figures are presented on a fiscal-year basis, is projected to grow 6.6% in 2026, 7.2% in 2027 and 7% in 2028.
The World Bank forecast emerging market and developing economies to slow to 3.6% in 2026 from 4.4% in 2025. Growth is then expected to recover to 4.2% in 2027 and 4.1% in 2028. The report said per capita income growth in emerging market and developing economies is projected to slow in 2026 to its weakest pace since the pandemic.
