UAE economy demonstrates notable resilience during Mideast conflict: IMF

The United Arab Emirates' economy has demonstrated significant resilience amid the ongoing geopolitical conflict in the Middle East, according to a recent assessment by the International Monetary Fund (IMF). An IMF staff team concluded a visit to the UAE on July 16, 2026, discussing economic developments, future outlook, and policy priorities.

Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE), highlighted the importance of these consultations in strengthening cooperation and exchanging views on economic and financial matters. He emphasized the UAE's commitment to monetary and financial stability and its capacity to adapt to regional and global changes. Balama noted that the visit's positive outcomes reaffirm the UAE economy's resilience and the soundness of its financial sector.

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These consultations provide an important platform for strengthening our existing cooperation with the IMF and exchanging views on the latest developments and future priorities. We also value the close cooperation among the relevant entities in the UAE and remain committed to reinforcing monetary and financial stability, while strengthening the financial system’s preparedness and capacity to keep pace with the regional and global changes and developments. The positive outcomes of the visit reaffirm the resilience of the UAE economy and the soundness of its financial sector.

Said Bakhache, Head of the IMF staff team, praised the UAE's robust economic fundamentals, ample policy buffers, and advanced preparedness. He stated that the authorities' timely and well-targeted support measures have been crucial in preserving financial stability, safeguarding supply chains, supporting affected sectors and households, and sustaining market confidence. These actions underscore the UAE's institutional capacity to navigate major external shocks.

The IMF team also observed that the UAE banking sector maintains strong capital and liquidity levels, with credit growth continuing, bolstered by robust financial positions established prior to the regional developments. The CBUAE's "Proactive Financial Institution Resilience Package," launched in March, was specifically noted for its role in enhancing financial sector stability and preparedness. Furthermore, the resilience of trade, aviation, and logistics, coupled with strong domestic demand, has supported economic activity and limited the impact of regional events. The IMF expects the fiscal balance to remain in surplus.

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The UAE economy has demonstrated significant resilience amid the geopolitical conflict in the Middle East. Sound fundamentals, ample policy buffers, advanced preparedness, and a swift policy response have contained the overall impact of the shock. The authorities' timely and well-targeted support measures have helped preserve financial stability, safeguard essential supply chains, support affected sectors and households, and sustain market confidence, underscoring the UAE's institutional capacity to navigate a major external shock.