Central Bank Governor Khaled Mohamed Balama Says Economic Diversification, Infrastructure Investment and Higher Oil Production Capacity Will Fuel Growth, While DFM Chief Hamed Ali Highlights the UAE’s Potential to Double Its Economy Every Decade.
The UAE economy is forecast to expand by nearly 10 per cent in 2027, a significant acceleration from the projected 1.6 per cent growth in 2026, driven by economic diversification, infrastructure development and higher oil production capacity, according to the country’s Central Bank Governor.
Khaled Mohamed Balama, Governor of the Central Bank of the UAE and the country’s representative as Governor at the International Monetary Fund (IMF), expressed confidence in the nation’s economic prospects despite ongoing geopolitical tensions in the region and increasing uncertainty across global markets.
Speaking during a high-level gathering of central bank governors and finance ministers from the Middle East, North Africa, Afghanistan and Pakistan region in Bangkok, Thailand, Balama emphasised the UAE’s resilient economic foundations and its capacity to withstand external economic disruptions.
The discussions took place during the 2026 Annual Meetings of the IMF and World Bank Group, with IMF Managing Director Kristalina Georgieva among the participants.
UAE Economy Doubles in Size Every Decade
Hamed Ali, CEO of Dubai Financial Market (DFM), highlighted the UAE’s sustained economic expansion, stating that the country has doubled the size of its economy approximately every ten years.
He attributed this performance to the nation’s long-standing commitment to economic diversification and its efforts to develop industries beyond traditional sectors.
Ali explained that diversification has been instrumental in supporting the country’s continued economic growth.
He also pointed to the UAE’s position as an international investment destination and a centre for long-term business partnerships, connecting markets across the East and West.
Against the backdrop of rapid changes in the global economy, Ali stressed the importance of more reliable economic forecasting, closer communication with stakeholders and access to a wider selection of financial instruments.
He encouraged financial institutions to remain flexible and responsive to evolving market conditions, allowing them to transform emerging challenges into opportunities for sustainable expansion.
Diversification and Infrastructure Investment Support Growth
Balama identified the continued expansion of non-oil industries as a major contributor to the UAE’s positive economic outlook.
He said sustained investment in infrastructure projects, alongside the development of diversified economic activities, is expected to strengthen the country’s growth prospects in the coming years.
The Central Bank Governor also indicated that higher oil production capacity, following the UAE’s reported withdrawal from OPEC, is expected to provide additional momentum to economic growth in 2027.
The Central Bank Governor described the UAE as a prominent example of economic resilience, supported by effective diversification strategies, strong economic policies and continued investment in technological advancement and workforce development.
He explained that these factors have helped strengthen the country’s ability to navigate economic uncertainty while maintaining its long-term development objectives.
Strong Financial Reserves Reinforce Investor Confidence
Khaled Mohamed Balama highlighted the UAE’s solid fiscal position, relatively low levels of public debt and substantial sovereign wealth assets as important foundations of the country’s economic stability.
According to the Governor, these financial strengths have helped sustain confidence among investors and financial markets despite ongoing geopolitical challenges across the region.
Balama emphasised that economic resilience is not determined solely by the size of a country’s financial reserves. Equally important, he said, is the ability to respond quickly and adjust policies effectively when economic conditions change.
He underscored the need for governments and financial institutions to maintain sufficient flexibility to address emerging risks while protecting economic stability.
UAE Emphasises the Need for Long-Term Economic Resilience
Balama noted that the global economy continues to confront a range of interconnected challenges that are placing pressure on financial systems and testing economic stability.
He stressed that countries must strengthen their financial safeguards before crises emerge, rather than relying exclusively on measures introduced after disruptions occur.
Maintaining effective policy frameworks and adequate financial buffers, he explained, enables economies to respond more efficiently to unexpected developments and external shocks.
Drawing on the UAE’s experience, Balama highlighted how economic diversification, technological innovation and sustained investment in human capital can contribute to stronger and more sustainable economic performance over time.
He presented these measures as essential elements of building economies capable of adapting to changing global conditions.
International Cooperation Essential for Global Economic Stability
Balama also called for closer cooperation among countries and international financial institutions to address economic risks associated with geopolitical tensions.
He cautioned that threats to global economic stability remain significant, making coordinated international action increasingly important.
Such cooperation, he explained, can help safeguard global economic growth, ease inflationary pressures and strengthen the international financial system’s ability to withstand disruptions.
The Governor also recognised the International Monetary Fund’s contribution to supporting financial stability and promoting economic development throughout the region.
Together, the remarks by Balama and Dubai Financial Market CEO Hamed Ali underline the UAE’s focus on economic diversification, strong financial fundamentals and international investment partnerships as central pillars of its long-term growth strategy.
