UAE reports 6.2% GDP growth in 2025, driven by non-oil sector expansion

The UAE’s gross domestic product grew 6.2 per cent year-on-year to hit Dh1.9 trillion ($517.2 billion) in 2025, anchored by the strength of the non-oil sector.

Non-oil GDP jumped 6.8 per cent annually to Dh1.5 trillion as the Arab world’s second-biggest economy continues to ride on the momentum of its economic diversification strategy, state news agency Wam reported on Saturday, citing data from the Federal Competitiveness and Statistics Centre.

The trade sector remained the biggest contributor last year with nearly 17 per cent, followed by finance and insurance (13.2 per cent), construction (12.9 per cent) and manufacturing (12.8 per cent), the FCSC figures showed.

In terms of growth, construction topped with a growth of more than 11 per cent, followed by finance and insurance (10.4 per cent), real estate (7.9 per cent), and transport and storage (7.8 per cent),

The 2025 figures reflect the “effectiveness of the UAE’s strategy to develop a diversified and sustainable economic model, supported by robust growth in non-oil sectors and the rising role of new economy industries”, Economy Minister Abdulla bin Touq said.

The growth is also helping the objectives of the We the UAE 2031 vision, the 10-year strategy launched in 2022 that prioritises generating more jobs, protecting the environment and creating a more digital, efficient society, underpinned by prioritising the future of education, legal reform and a strong economy.

The country’s flexible economic policies are “based on future foresight and effective responsiveness to global developments [and] have accelerated economic diversification and strengthened the foundations of competitiveness and sustainable growth”, Mr Bin Touq said.

The UAE continues to reinforce its economic stability by introducing initiatives and legislation to encourage participation in its diversification mission, part of a strategy to prepare the nation for the economy of the future.

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The country’s non-oil foreign trade in 2025 surged 26 per cent to exceed $1 trillion for the first time, government data showed in January.

The Emirates also continues to attract investments, both from domestic and international players, as it positions itself as a hub for business, supported by complementary sectors such as tourism and aviation.

Major players in the investment and financial sphere, including a number of trillion-dollar asset managers, are also choosing the UAE, especially Abu Dhabi, as its regional base. The UAE capital is home to the Abu Dhabi Investment Authority, Mubadala Investment Company and the recently created L’imad, which has taken control of the investment holding company ADQ.

The country also decided to leave the Opec and Opec+ oil groups earlier this month, a move that will afford it more flexibility and responsiveness in managing the oil market, particularly in light of the widespread energy supply collapse from the Iran war, Minister of Energy and Infrastructure Suhail Al Mazrouei previously told The National.

The UAE also maintained its credit rating and stable outlook from Fitch Ratings amid the US-Iran war, largely due to the government’s sufficient fiscal buffers that have acted as a cushion against economic shocks.

The nation retained a long-term issuer default rating of AA-, as oil export revenue is expected to remain strong during the conflict and to offset immediate negative impacts, Fitch said last week.

Earlier this month, Fitch also affirmed Abu Dhabi’s long-term foreign-currency issuer default rating at AA, on the back of “very strong fiscal and external metrics”.

The emirate’s non-oil foreign trade soared 36 per cent last year, exceeding Dh415.4 billion, as it moves ahead with its economic diversification agenda, Abu Dhabi Customs data showed in April.

The UAE’s integrated economic ecosystem is able to support long-term growth and reinforce the country’s position as a global hub for business and investment, FCSC managing director Hanan Ahli said.

“The strong economic results achieved in 2025 reflect the success of the UAE’s development and economic policies in strengthening economic stability and enhancing the competitiveness of key sectors,” she said.

“It also gears the national economy towards greater diversity and efficiency, especially as the Emirates continues to strengthen its future economic readiness through investment in the digital economy, technology and innovation.”