First Abu Dhabi Bank reported that the UAE growth forecast for 2026 stands near 5.6% in its Global Investment Outlook. The report outlines global economic expansion, regional performance, and capital allocation risks shaping investment conditions across markets.
Global GDP is projected to grow about 3.1% in 2026, slightly below 3.2% in 2025. Advanced economies may expand near 1.5%. Emerging markets, including the GCC and Egypt, could record growth above 4%, according to the report.
What the UAE growth forecast shows
FAB attributes the UAE outlook to diversification policies, structural reforms, and continued investment activity supporting non-oil sectors. The report also highlights uneven monetary easing and persistent inflation risk across major economies.
US rate cuts may proceed more slowly than in 2025 because inflation pressures and geopolitical tensions remain unresolved. At the same time, technological transformation continues to reshape wealth and asset management through artificial intelligence, automation, and digital platforms influencing capital flows and portfolio construction.
Impact on GCC economy and investors
The report identifies the GCC as a relatively stable growth region during global uncertainty. Strong non-oil activity, regulatory development, and rising institutional investment demand continue to support regional momentum.
Asset managers across the GCC are expanding governance frameworks and investment products to meet demand for professionally managed solutions. Diversified portfolios remain central to risk management, helping limit downside exposure while allowing participation across market cycles, the report states.
The outlook describes an environment of structural economic transition, evolving demand and supply dynamics, and narrowing safety margins. These conditions define investment positioning through 2026 based on current data without projecting outcomes beyond the report period.
