# IMF projects UAE economy to shrink 3.9% in 2026

Second Order · 13 October 2026, 17:55 UAE time

<https://secondorderuae.com/brief/2026-10-13/>

Written and checked by AI from the linked sources. Published by Oleksii Zaitsev. Non-commercial project. No ads.

## 1. The IMF projects that the UAE economy will contract by 3.9% in 2026.

Money & Banking

**What it means:** The IMF cut its Gulf forecasts sharply because the Strait of Hormuz has stayed closed.

Source: [The National](https://www.thenationalnews.com/podcasts/trending-middle-east/2026/10/13/riyadh-extends-airport-closure-uk-imposes-sanctions-on-iranians-and-imf-cuts-gulf-growth-forecasts)

<https://secondorderuae.com/brief/2026-10-13/#item-1>

## 2. Dubai's annual inflation eased to 5.03% in September from 5.54% in August, according to the Dubai Data and Statistics Establishment. The peak for 2026 was 5.7% in June.

Money & Banking

**What it means:** Transport costs rose 14.7% over the year. Fuel for private vehicles rose 37.52% over the year. Housing and utilities rose almost 6.23% as average rents went up in most areas of the emirate.

Source: [The National](https://www.thenationalnews.com/business/economy/2026/10/13/dubai-inflation-climbs-in-september-as-iran-war-pushes-up-fuel-cost)

<https://secondorderuae.com/brief/2026-10-13/#item-2>

## 3. The closure of Riyadh's King Khalid International Airport has been extended until 17 October.

Flights & Airspace

Source: [The National](https://www.thenationalnews.com/podcasts/trending-middle-east/2026/10/13/riyadh-extends-airport-closure-uk-imposes-sanctions-on-iranians-and-imf-cuts-gulf-growth-forecasts)

<https://secondorderuae.com/brief/2026-10-13/#item-3>

## 4. Six commercial vessels were reported struck in and around the Strait of Hormuz on 11 October, according to warnings from UKMTO, the British navy's shipping security office.

Shipping & Supply

**What it means:** According to US naval shipping data cited by the Joint Maritime Information Center, about 29 vessels a day passed through the strait over a 72-hour period. The historical average is about 138 a day.

Source: [gCaptain](https://gcaptain.com/new-reports-reveal-five-more-ships-hit-near-hormuz)

<https://secondorderuae.com/brief/2026-10-13/#item-4>

## 5. The Emirates Drug Establishment has recalled batch 20251015 of Nin 160 FMB-NML blue three-ply face masks after inspections found foreign material or contamination.

Daily Life

**What to do:** Stop using masks from batch 20251015 and return them to the point of purchase.

Source: [Khaleej Times](https://www.khaleejtimes.com/uae/uae-issues-recall-face-mask-batch-quality-concerns)

<https://secondorderuae.com/brief/2026-10-13/#item-5>