Abu Dhabi, UAE – The UAE Central Bank expects the UAE’s GDP to accelerate next year to 5.2%, compared to an expected 5% growth for the current year 2025.
The Central Bank lowered its inflation rate forecast to 1.3% for the current year, down from 1.5% previously expected.
This is a result of continuing low trends in transportation costs and prices of non-energy goods.
The Central Bank said in its report: “The UAE economy showed strong resilience in light of the global uncertainty, as the gross domestic product recorded growth of 4.5% year-on-year in the second quarter of 2025, driven by the strong performance of non-oil activities, especially in the sectors Financial services, insurance, manufacturing, and construction.
He added: “The UAE’s economic outlook remains positive, supported by rising oil production and continued strong momentum in non-oil activities. GDP growth is expected to reach 5.0% in 2025, with the non-hydrocarbon sector expanding by 4.9%, and the hydrocarbon sector returning to growth of 5.4%, driven by a faster-than-expected increase in production cuts following increases in (OPEC+) production quotas. In 2026, growth is expected to accelerate to 5.2%, supported by improved performance in both sectors.”
assets rise
The Central Bank said: “The banking sector in the UAE continued to achieve strong performance, as total assets increased by 18.1% year-on-year to reach AED 5.2 trillion by the end of the third quarter of 2025. The loan portfolio also increased by 14.7% and deposits by 15.4%. Banks maintained strong capital levels, with a capital adequacy ratio of 17.4%, along with improved asset quality, with the non-performing loan ratio declining to 1.6%.
The Central Bank indicated that the insurance sector has achieved remarkable growth.
Written premiums and the number of insurance policies increased by 13.7% and 6.9%, respectively, in the third quarter of 2025.
Technical allocations and equity increased by 2.2% and 7.8%, respectively.
In turn, the residential real estate market in the UAE witnessed increasing momentum during the first nine months of 2025.
With double-digit growth rates in the number of sales transactions, driven mainly by strong demand for residential apartments.
Capital markets recorded strong performance in the third quarter of 2025.
The Dubai Financial Market index rose by 37.9% year-on-year.
Meanwhile, the Abu Dhabi Securities Market index rose by 8.7%.
