The World Bank expects the United Arab Emirates’ economy to grow by 4.6% in 2025, the highest rate among all Gulf Cooperation Council (GCC) countries, with projections indicating a further increase to 4.9% in 2026. These forecasts were included in the World Bank’s latest economic update for the Middle East and North Africa, announced during the Spring Meetings in Washington under the title, “How the Private Sector Can Strengthen Growth in the Middle East and North Africa.”
Previously, the World Bank had projected in its January Global Economic Prospects report that the UAE’s economy would grow by 4% in 2025. The upward revision highlights growing international confidence in the strength of the country’s economy. As for other GCC countries, Saudi Arabia’s economy is expected to grow by 2.8% in 2025 and rise to 4.5% in 2026. Kuwait’s economy is forecasted to expand by 2.2% in 2025, reaching 2.7% in 2026. Bahrain’s economy is projected to grow by 3.5% in 2025 before slightly declining to 3% in 2026. Qatar’s economy is expected to grow by 2.4% in 2025 and jump to 5.4% in 2026. Oman’s economy is projected to expand by 3% in 2025 and 3.7% in 2026.
According to the report, the GCC countries experienced notable improvement in growth, moving from 0.4% in 2023 to 1.9% in 2024, driven by stronger non-oil sector performance in Saudi Arabia and the UAE, despite the sharp decline in oil prices and production that had nearly stalled growth in 2023. The World Bank also noted that the real GDP of GCC countries is expected to grow by 4.5% in 2026, compared to 2.4% for developing oil-exporting countries and 3.7% for developing oil-importing countries.
The report indicated that the Middle East and North Africa region achieved modest growth of 1.9% in 2024, with expectations to rise to 2.6% in 2025 and 3.7% in 2026, while global uncertainties continue to cast a shadow over these projections. Despite downward pressure on oil prices, economic activity in Algeria, Iraq, Kuwait, Oman, Saudi Arabia, and the UAE is expected to benefit from the gradual increase in oil production planned by OPEC+ between April 2025 and September 2026.
The report concluded by emphasizing that economic diversification efforts will continue to drive the expansion of non-oil sectors, particularly in the UAE, Oman, Qatar, and Saudi Arabia, supporting prospects for sustainable development across the region in the coming years.