United Arab Emirates economy at a glance

Latest figures for United Arab Emirates: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open United Arab Emirates on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	2.0%	December 2025	1.6% November 2025
Real GDP growth (year on year)	−2.1%	Q2 2026	3.0% Q1 2026
Policy rate (Central Bank of the UAE)	3.90%	November 2026	3.90% October 2026
Manufacturing PMI (S&P Global UAE PMI: whole non-oil private sector, not manufacturing-only. Dubai PMI was 54.5 in Sep 2026)	54.8	October 2026	55.3 September 2026
Stock market (ADX General Index (Abu Dhabi); DFM General was 5,867 on 16 Oct 2026)	9,466	October 2026

Questions and answers

What is the inflation rate in United Arab Emirates?

United Arab Emirates's annual inflation rate was 2.0% in December 2025, up from 1.6% in November 2025.

What is the interest rate in United Arab Emirates?

The Central Bank of the UAE base rate on the overnight deposit facility; AED pegged to USD is 3.90% (as of November 2026). The next rate decision is due on 9 December 2026.

How fast is United Arab Emirates's economy growing?

United Arab Emirates's real GDP grew −2.1% year on year in Q2 2026. The IMF's October 2026 World Economic Outlook forecasts growth of −3.9% in 2026 and 7.7% in 2027.

How much government debt does United Arab Emirates have?

United Arab Emirates's government debt is about 32.8% of GDP (latest annual figure), with a budget surplus of 2.9% of GDP.

What is United Arab Emirates's credit rating?

United Arab Emirates's sovereign credit ratings: Moody's Aa2.

What is the VAT rate in United Arab Emirates?

United Arab Emirates's standard VAT rate is 5% (2026 rules).

What is the corporate tax rate in United Arab Emirates?

United Arab Emirates's corporate income tax rate is 9.0% (2026 rules).

Who leads United Arab Emirates?

United Arab Emirates is led by President Sheikh Mohamed bin Zayed Al Nahyan (head of state); Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum - as of mid-2026, not re-verified in Oct 2026.

Outlook

Non-oil momentum is strong: the PMI held at a 20-month high of 55.3 in September, and output growth was the fastest since before the war, which supports a rebound from the Q2 contraction. The main downside risks are further escalation of attacks on Gulf shipping and Emirati facilities, Fed-linked rate hikes (the CBUAE raised rates in September), and cost pass-through (selling prices are rising at the fastest pace since 2011). Firms' year-ahead confidence remains near recent lows, and no IMF/World Bank October forecast could be verified this session.

Why United Arab Emirates matters for the world economy

The UAE is a top oil exporter and OPEC+ member, and Dubai/Jebel Ali and Abu Dhabi are among the world's main re-export, aviation and logistics hubs linking Asia, Africa and Europe, so disruption there ripples through shipping, air freight and insurance markets. Its Fujairah outlet and the US-UAE tanker shuttle are now part of the system keeping Gulf crude flowing around Hormuz, which makes Emirati infrastructure a target and a factor in global oil prices. India, Japan and China are the most exposed as buyers, while the sovereign wealth funds (ADIA, Mubadala, ADQ) are big investors in Western assets and AI infrastructure.

Politics

The federation is run by the ruling families of Abu Dhabi and Dubai, with policy focused on diversification into trade, logistics, finance, tourism and AI. In the US-Iran conflict the UAE is on the front line of Gulf shipping: Iran accuses it of supporting a US-run tanker shuttle around Hormuz, which puts Emirati ports and energy assets at risk. GDP shrank in Q2 2026 for the first time since 2021, but the non-oil private sector has bounced back strongly since the summer.

System: Federal monarchy (federation of seven emirates).

Economy and taxes

GDP: US$552 billion
Population: 11.2 million
Government debt: 32.8% of GDP
Budget balance: 2.9% of GDP
Current account: 13.2% of GDP
Main exports: Crude oil, refined petroleum, gold, re-exports, telecom equipment, diamonds and jewellery, petroleum gas, aluminium
Top export markets: India (14.2%), Japan (8.3%), China (7.7%), Saudi Arabia (7.5%), Iraq (4.8%)
IMF growth forecast: −3.9% in 2026, 7.7% in 2027
IMF inflation forecast: 4.5% in 2026, 2.5% in 2027
Currency: AED
Freelancer tax: A self-employed person earning the average wage (AED None a year) pays about 0.0% of it in income tax and social contributions (2026 rules)
Top income tax rate: 0.0%
Gold reserves: 72.8 tonnes (August 2026)
Energy self-sufficiency: 235% (2024)

Recent news

4 November 2026 UAE non-oil growth stays strong as selling prices rise at a record pace Trading Economics / S&P Global
The S&P Global UAE PMI eased to 54.8 in October from 55.3, but new orders grew faster on home and foreign demand. Firms raised their prices at the fastest rate since the survey began in 2009, and confidence hit its highest since January.
4 November 2026 Iran rejects the US reply to its Hormuz plan as tanker attacks continue Al Jazeera
Iran said Washington's answer to its offer to reopen Hormuz in return for lifting sanctions and the naval blockade was not convincing, after US strikes on Qeshm Island. Qatar is relaying proposals, while a tanker was hit off Oman and Iran claimed four tankers struck mines.
28 October 2026 UAE central bank keeps its base rate at 3.9% after the Fed holds Arab News
The Central Bank of the UAE left the base rate on its overnight deposit facility at 3.9%, in step with the Fed's decision to keep US rates at 3.75-4.00%. Qatar and Bahrain also held their rates.
27 October 2026 UAE and Canada sign a trade pact cutting tariffs on almost all Canadian goods Al Jazeera
The two countries signed a Comprehensive Economic Partnership Agreement that will cut or remove tariffs on over 99% of Canadian exports to the UAE once fully in force, expected in 2027. Two-way trade was C$3.5bn last year, and preliminary deals on energy and defence were also signed.
23 October 2026 Oil spill from a damaged tanker forces UAE beach closures Euronews
The environment ministry confirmed a tanker spill reaching Umm Al Quwain's beaches, which were closed. A maritime security firm linked it to the Gem No.2, hit by a projectile off the UAE coast on 9 October, as attacks on ships near Hormuz continue.
19 October 2026 Dubai's economy shrank 2.3% in the first half as the war hit trade and transport Khaleej Times
Real GDP fell to about Dh473bn, with wholesale and retail trade down 6% and transport and storage down 7.4%, while finance (+8.8%) and health care grew. Output at current prices edged up 0.2%.

Headlines and summaries are compiled daily from the linked reports with AI assistance.