Citigroup projects the UAE economy will contract 0.2% in 2026 after 6.2% growth
in 2025. Non-oil output is forecast to decline 0.8% in 2026, reversing 2025’s
6.8% gain, while oil-sector growth slows to 1.7% from 4.3% in 2025. Citigroup
says the UAE is the Gulf economy most exposed to the Middle East conflict, via
trade, tourism, imports and domestic-demand channels. Strong fiscal and external
buffers leave the government with scope to respond if shocks persist.