ABU DHABI, March 18 (Xinhua) -- The economy of the United Arab Emirates (UAE) is projected to grow by 5.6 percent in 2026, maintaining the robust pace of the previous year, as strong non-oil activity helps cushion the impact of ongoing regional tensions, the country's central bank said Wednesday.
In its latest report, the Central Bank of the UAE said growth this year will be driven primarily by the non-hydrocarbon sector, reflecting continued progress in economic diversification.
The forecast positions the UAE to outpace the Gulf Cooperation Council (GCC) average of 4.8 percent in 2026, ranking it second in the region behind Qatar.
The hydrocarbon sector is also expected to contribute, with its GDP forecast to expand by 7.3 percent in 2026, supported by higher oil production. Meanwhile, resilient non-oil sectors such as financial services, manufacturing, and trade, alongside growth in tourism and transportation, are expected to sustain momentum.
The central bank noted that economic activity across the GCC has strengthened significantly. The regional growth rose from 2.5 percent in 2024 to 4.3 percent in 2025, driven largely by robust expansion in the UAE and Saudi Arabia.
Despite heightened geopolitical tensions in the Middle East, most analysts and ratings agencies expect the impact on the UAE and the broader GCC economies to be limited and largely short-term.
Earlier this month, S&P Global Ratings reaffirmed the UAE's sovereign credit rating at "AA/A-1+" with a stable outlook, citing strong fiscal buffers, diversified growth drivers, and one of the world's largest sovereign wealth portfolios.
The agency also estimates that the UAE government's consolidated net asset position will reach about 184 percent of GDP in 2026, among the strongest sovereign balance sheets globally.
Analysts said the UAE's stable policy environment and continued investment in non-oil sectors are likely to support sustained economic growth, even amid external uncertainties.
