The Central Bank of the UAE's quarterly economic review for June 2026 forecast that real GDP growth will reach 1.7% during 2026, supported by continued government investments, enhanced economic diversification, and proactive economic policies, with total GDP growth projected to reach 9.8% in 2027.
The report affirmed that the UAE economy continues to demonstrate high levels of resilience and adaptability to economic variables, driven by economic diversification policies that reinforce the strength of the national economy.
The report also noted that effective economic policies and sustained growth diversification incentives, alongside the robustness of the capital sector and its capacity to withstand economic variables, contribute to supporting companies, individuals, and investors.
The report revealed that the banking sector continues to achieve strong growth in assets, credit, and deposits, supported by high capital adequacy and improved asset quality, reinforcing the soundness and stability of the financial system. Total banking sector assets reached 5.56 trillion dirhams.
The Central Bank forecast in the report that inflation will reach 2.3% during 2026, before declining to 1.9% in 2027 — well below the global average — reflecting the effectiveness of economic policies and price stability.
The report added that capital markets continue to record positive performance, alongside the strength and growth of the banking sector and stability of the insurance sector, bolstering confidence in both the financial and economic sectors in the UAE.