The UAE recorded the strongest economic performance in the Gulf region in 2025, according to Dr Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund.
Speaking to the Emirates News Agency (WAM) on the sidelines of Abu Dhabi Finance Week, he said Abu Dhabi’s robust growth had played a central role in lifting the country’s overall performance.
UAE leads Gulf in 2025 growth
Dr Azour highlighted the UAE’s ongoing efforts to deepen economic diversification and expand investment in priority sectors. He said the acceleration of technology and artificial intelligence investment was becoming a defining trend across the Gulf. “Investment in the technology and AI sector is one of the key elements GCC states are focusing on in the coming years,” he said, describing the sector as highly promising.
He also underlined the growing importance of the financial sector within the region. “The role of the financial sector in GCC countries is also increasing, whether in areas related to fintech or in deepening financial markets,” he said.
Dr Azour pointed to a series of major transformations in the global economy driven by shifting economic policies, changes in global trade including new tariffs, and geopolitical tensions in several regions. He noted that despite recent shocks, global growth had remained acceptable, although elevated uncertainty continued to weigh on economic decision-making. He warned that such uncertainty typically exerts negative effects over time.
Looking ahead, he said 2026 would be a pivotal year which would require close monitoring of how economic policies influence inflation, economic activity, trade flows and financial markets. He added that the Middle East had managed to maintain a stable performance despite global pressures.
Dr Azour attributed this resilience to three key factors: the continued strong expansion of the non-oil sector in Gulf states, higher oil production in GCC countries, and the ability of oil-importing states in the region to benefit from improved economic activity, tourism and trade.
Follow us on
