UAE Expected to Grow 5.6% in 2026
- 06.02.2026
- Posted by: Uwe Hohmann
- Categories: Dubai, Middle East
FAB (First Abu Dhabi Bank) recently published its Global Investment Outlook for 2026, which forecasts that the UAE will achieve real GDP (Gross Domestic Product) growth of around 5.6% this year, the strongest in the GCC (Gulf Cooperation Council) region.
To put that in context, advanced economies like the US and Europe are expected to grow at roughly 1.5%. Global GDP overall is projected at 3.1%. The UAE is growing at nearly four times the rate of developed markets.
That is not a small gap, and for anyone running or starting a business here, it is worth understanding what lies behind it.
Where the Growth Is Coming From
The 5.6% figure is not being carried by oil prices alone. A large share of it comes from non-oil sectors: real estate, tourism, logistics, financial services, technology, and trade. The UAE government has spent the last several years building out these sectors through policy reforms, infrastructure investment, and regulatory changes designed to attract foreign capital and talent.
The FAB report also pointed to AI (Artificial Intelligence), automation, and digital platforms as forces that are reshaping how businesses operate across the region. This is already visible on the ground. Companies in the UAE are adopting cloud-based tools, automating compliance processes, and rethinking how they deliver services.
At the same time, the GCC as a whole is going through what the report describes as growing institutionalisation. Regulatory frameworks are becoming more sophisticated, governance standards are tightening, and demand for professional financial and advisory services is rising. For business owners, this translates into a more structured operating environment with clearer rules, but also higher expectations around compliance.
What to Pay Attention To
A strong growth forecast is encouraging, but it does not change the basics. Businesses that succeed in this environment will be those that stay on top of their obligations and plan ahead.
A few things worth reviewing as we move through 2026:
Your company setup. If you are entering the UAE market, choosing the right structure and jurisdiction matters more than ever. Mainland or free zone options, each come with different rules around ownership, activity licensing, and reporting. Getting your setup right from the start saves time and money later.
Your visa and residency arrangements. Immigration rules continue to evolve, and keeping employee and investor visas aligned with current GDRFA (General Directorate of Residency and Foreigners Affairs) requirements avoids unnecessary disruptions to your operations.
Your accounting and financial records. Accurate bookkeeping and timely reporting are mandatory. As the regulatory environment matures, businesses are expected to maintain proper accounts and be ready for review at any time.
Your tax and compliance obligations. The UAE’s CIT (Corporate Income Tax) regime is still relatively new, and the FTA (Federal Tax Authority) is actively monitoring compliance. Staying on top of your filings and understanding how VAT (Value-Added Tax) and CIT apply to your business are essential.
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- Accounting: Our team ensures your business stays compliant with local financial regulations, which is crucial for maintaining good standing in Dubai’s business community.
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