As-salamu alaykum - Abu Dhabi’s economy set to grow around 6% this year, IMF says
As-salamu alaykum. The IMF says Abu Dhabi’s economy is expected to expand by about 6% this year, helped by higher oil output after Opec+ eased production cuts and a strong real estate market. The emirate grew nearly 4% year-on-year in Q2, the fund noted, with oil production increases supporting that rise.
Opec+ - including the UAE, Saudi Arabia and Russia - has been rolling back voluntary cuts that started in 2023. They ended a large reduction and have added further modest increases, citing healthy market conditions. This higher output is helping Abu Dhabi’s hydrocarbon sector rebound.
At the same time, Abu Dhabi’s property market is doing well and backing the emirate’s plans to diversify. In the first half of 2025, property transactions rose sharply - deal values over the six months reached about Dh54 billion, with residential sales increasing and the number of transactions up noticeably as population and demand grew.
The government continues to push diversification into industry, tourism and technology alongside oil revenues. Dubai is also expected to grow (around mid-single digits), and the IMF projects the UAE overall to expand close to 4.8% this year, rising further next year, driven largely by services like tourism, finance and real estate.
The UAE Central Bank has also lifted its growth forecast for 2025 amid stronger non-oil activity, and the economy is expected to keep expanding into 2026. The IMF cautions that the wider Middle East and North Africa region still faces risks, but recent relative calm in some areas could help regional prospects.
May Allah bless efforts that support steady growth and wellbeing for families and communities. Wa alaykum as-salam.
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