The World Bank projects the UAE economy to grow at 4.9 per cent in 2026 and 2027. Antonie Robertson/The National
The World Bank projects the UAE economy to grow at 4.9 per cent in 2026 and 2027. Antonie Robertson/The National
The World Bank projects the UAE economy to grow at 4.9 per cent in 2026 and 2027. Antonie Robertson/The National
The World Bank projects the UAE economy to grow at 4.9 per cent in 2026 and 2027. Antonie Robertson/The National

World Bank upgrades UAE growth forecast to 4.6% this year on non-oil boost


Deepthi Nair
  • English
  • Arabic

The World Bank has upgraded its growth forecast for the UAE to 4.6 per cent this year, up from its 4 per cent projection in January, on expanding non-oil activity and phase-out of the Opec+ oil production cuts.

The Washington-based multilateral lender projects the UAE economy to grow at 4.9 per cent in 2026 and 2027, respectively, it said in its latest Global Economic Prospects report.

The Emirates’ economy is estimated to have expanded by 3.9 per cent last year, the lender said on Tuesday. In its January 2025 update, the World Bank estimated UAE growth for 2024 at 3.3 per cent.

The UAE has been focusing heavily on diversifying its economy from oil by developing sectors such as technology, manufacturing, tourism, trade and innovation.

The UAE’s economy grew by 3.9 per cent in 2024, the Central Bank reported in April, with the non-oil growth up 4.6 per cent. The banking regulator expects the country’s gross domestic product to expand at 4.7 per cent this year, with non-oil growth at 5.1 per cent.

Meanwhile, late last month oil producers group Opec+ agreed to increase its monthly output by 411,000 barrels per day for July, the same as in May and June, as part of its plans to gradually ease cuts.

In March, Opec+ said it would proceed with a “gradual and flexible” unwinding of voluntary production cuts of 2.2 million bpd, starting in April and moving until September 2026.

The planned return of production cuts – originally made by eight Opec+ members, including Saudi Arabia, Russia, the UAE and Iraq, in November 2023 – had been pushed back several times amid concerns about growing supply and dampening demand in the market.

Globally, the World Bank projects the economy to expand 2.3 per cent this year, about half a percentage point lower than estimates at the start of the year, it said in the report.

The global economy is set to suffer the consequences of heightened trade tension and policy uncertainty, with the World Bank estimating the pace of growth to fall to the slowest level since 2008 outside of global recessions.

The turmoil caused by the US's bid to levy historic tariffs on global trade has resulted in “growth forecasts being cut in nearly 70 per cent of all economies – across all regions and income groups”, the lender said.

Growth is anticipated to continue to be boosted by expanding non-oil activity, particularly in the manufacturing, construction, and services sectors, in several economies, including Bahrain, Kuwait, Oman, and the UAE
World Bank

A global recession is not expected. However, if forecasts for the next two years materialise, average global growth in the first seven years of the 2020s will be the slowest of any decade since the 1960s.

Meanwhile, growth in Gulf countries is forecast to increase to 3.2 per cent in 2025, 4.5 per cent in 2026, and 4.8 per cent in 2027, the World Bank said.

“The phase out of Opec+ oil production cuts starting in April 2025 is expected to lead to rising oil production, despite projected lower oil prices amid weakening global demand,” according to the lender.

“Growth is also anticipated to continue to be boosted by expanding non-oil activity, particularly in the manufacturing, construction, and services sectors, in several economies, including Bahrain, Kuwait, Oman, and the UAE.”

The World Bank expects growth in Saudi Arabia to increase to 2.8 per cent this year on “a gradual expansion of oil production”, the report said.

However, the forecast for 2025 has been downgraded by 0.6 percentage point, mainly because of expected lower oil prices and fiscal revenue leading to lower export proceeds, as well as heightened uncertainty curbing investment, the lender forecasted.

Among oil exporting countries, further declines in crude prices from slower global growth and weaker demand from major export destinations, including China, could increase fiscal pressures and diminish growth prospects, the lender said.

"While the phase-out of oil production cuts by Opec+ members will benefit growth in oil exporters, lower oil prices could lessen the positive effects, including on revenue collection," it said.

Which honey takes your fancy?

Al Ghaf Honey

The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year

Sidr Honey

The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest

Samar Honey

The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments

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Pharaoh's curse

British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.

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Who has lived at The Bishops Avenue?
  • George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
  • Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
  • Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
  • Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills. 
Hunting park to luxury living
  • Land was originally the Bishop of London's hunting park, hence the name
  • The road was laid out in the mid 19th Century, meandering through woodland and farmland
  • Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds

 

UAE currency: the story behind the money in your pockets
'Laal Kaptaan'

Director: Navdeep Singh

Stars: Saif Ali Khan, Manav Vij, Deepak Dobriyal, Zoya Hussain

Rating: 2/5

The low down

Producers: Uniglobe Entertainment & Vision Films

Director: Namrata Singh Gujral

Cast: Rajkummar Rao, Nargis Fakhri, Bo Derek, Candy Clark

Rating: 2/5

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Pox that threatens the Middle East's native species

Camelpox

Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.

Falconpox

Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.

Houbarapox

Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.

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When Umm Kulthum performed in Abu Dhabi

  

 

 

 

Known as The Lady of Arabic Song, Umm Kulthum performed in Abu Dhabi on November 28, 1971, as part of celebrations for the fifth anniversary of the accession of Sheikh Zayed bin Sultan Al Nahyan as Ruler of Abu Dhabi. A concert hall was constructed for the event on land that is now Al Nahyan Stadium, behind Al Wahda Mall. The audience were treated to many of Kulthum's most well-known songs as part of the sold-out show, including Aghadan Alqak and Enta Omri.

 
Updated: June 11, 2025, 7:08 AM