Global banks and financial institutions have forecast that the UAE economy will continue to perform strongly during 2026, supported by solid economic fundamentals, an accelerating pace of economic diversification, and sustained investment and capital flows, despite uncertainty stemming from geopolitical tensions and volatility in global markets.
International financial institutions including S&P Global Market Intelligence, Standard Chartered, HSBC, Deutsche Bank, and Saxo Bank said in exclusive statements to Al Bayan that the UAE continues to strengthen its position as a global hub for trade, investment, and financial services.
The country is benefiting from its advanced infrastructure, an attractive regulatory environment, and strong fiscal reserves, alongside continued growth in non-oil sectors that are driving the largest share of the country's economic expansion.
The Federal Competitiveness and Statistics Centre recently announced that the UAE's real GDP grew by 6.2% in 2025 compared with 2024, reaching a value of 1.9 trillion dirhams, while non-oil GDP grew by 6.8% last year compared with 2024, reaching a value of 1.5 trillion dirhams.
The World Trade Organization's World Trade Statistical Review report showed that the UAE entered the global top-10 ranking for merchandise exports for the first time in its history, claiming 9th place among the world's largest merchandise-exporting nations.
The country's total external trade also recorded exceptional growth, reaching 6 trillion dirhams (USD 1.63 trillion) in 2025, compared with 5.23 trillion dirhams (USD 1.42 trillion) in 2024, representing growth of approximately 15%.
During May, the UAE's seasonally adjusted Purchasing Managers' Index (PMI) rose to 52.6 points in May from 52.1 points in April, remaining above the 50-point threshold that separates growth from contraction.
Two officials at S&P Global Market Intelligence affirmed that the UAE economy continues to demonstrate strong levels of resilience in 2026, despite regional geopolitical challenges and supply chain disruptions, supported by robust domestic demand, strategic investments, government spending, and the country's growing status as a regional hub for artificial intelligence.
They noted that business activity indicators in the non-oil private sector continue to reflect strong growth, with companies remaining optimistic about economic activity for the remainder of the year.
In Dubai, the institution said in exclusive statements to Al Bayan that the economy is expected to gain further momentum during the second half of the year, benefiting from commercial projects, strategic investments, and supportive government policies.
It also projected that the real estate sector would regain momentum after regional tensions ease, supported by pent-up demand and the emirate's attractiveness as a regional hub for business and investment, while government economic support measures have helped to bolster the non-oil private sector and maintain financial market stability.
In detail, David Owen, Chief Economist at S&P Global Market Intelligence, said: