The UAE economy is projected to grow by 7.7% in 2027, according to the IMF, with artificial intelligence investment expected to provide an additional boost to annual growth.
UAE growth forecast raised
The International Monetary Fund raised its 2027 UAE growth forecast by 2.4 percentage points compared with its April projections, highlighting the country’s financial buffers, infrastructure and technological capabilities.
The forecast was presented during a press conference organised by Dubai International Financial Centre (DIFC) in cooperation with the IMF. The event discussed the October 2026 Regional Economic Outlook for the Middle East and Central Asia.
Dr Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, said the UAE was well positioned to benefit from advances in artificial intelligence, supported by its existing investments and digital infrastructure.
AI could add to UAE economic growth
According to Dr Azour, continued investment in AI could add around 0.5 percentage points to the UAE’s annual economic growth.
The IMF report estimated that AI adoption could increase annual growth across the Middle East and Central Asia by between 0.1 and 0.6 percentage points over the medium term, depending on countries’ readiness and ability to deploy the technology.
The report highlighted the importance of digital infrastructure, workforce training, skills development and innovation. It also pointed to opportunities to develop AI-based services for international markets.
GCC inflation expected to ease
Average inflation across GCC countries is forecast to fall to 2.4% in 2027 and reach around 2% from 2028 onwards, supported by lower commodity prices and continued fiscal discipline.
The report also highlighted the role of trade diversification, alternative transport routes and stronger regional economic integration in helping economies manage external shocks.
Investment in logistics infrastructure, education and workforce skills was identified as important for improving productivity and supporting economic diversification.
IMF outlines regional support
The IMF said it had approved approximately US$48 billion in financing for countries across the Middle East and Central Asia since 2020.
During fiscal year 2026, it also carried out 437 technical assistance and capacity development projects across 31 countries to support economic stability and development.
The report concluded that investment in technology, stronger trade links and economic diversification would help countries across the region improve productivity and create opportunities for sustainable growth.
