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UAE economy records 6.2% GDP growth in 2025, non-oil rises 6.8 percent

by James Bryant
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UAE economy records 6.2% GDP growth in 2025, non-oil rises 6.8 percent

UAE GDP 2025 posts 6.2% growth as non-oil economy expands 6.8%

UAE GDP 2025 up 6.2% to AED 1.9tn; non-oil GDP grows 6.8% to AED 1.5tn. Trade, finance and construction lead growth as diversification accelerates and investment.

The UAE’s economy expanded strongly in 2025, with real GDP rising 6.2% year-on-year to AED 1.9 trillion, marking a broad-based recovery driven by non-oil activity. Non-oil GDP grew 6.8% to reach AED 1.5 trillion, underlining continued momentum in diversified sectors. Officials credited flexible economic policy, infrastructure investment and growing activity in trade, finance and construction for the outperformance.

Key national growth figures announced

The Federal Competitiveness and Statistics Center reported the headline figures, confirming a 6.2% increase in real GDP for 2025 compared with 2024. Non-oil sectors recorded a faster pace of expansion at 6.8%, contributing AED 1.5 trillion to the economy. These results represent a significant step toward the UAE’s medium-term development targets under the We the UAE 2031 strategy.

Sector contributions and non-oil leadership

Within the non-oil economy, trade remained the largest contributor, accounting for 16.9% of non-oil GDP. Financial and insurance activities contributed 13.2%, while construction and manufacturing each held double-digit shares at about 12.9% and 12.8% respectively. The distribution of output highlights the resilience and diversification of the production base supporting overall growth.

Fastest-growing industries in 2025

Several sectors registered particularly strong expansion last year, led by construction and building activity which grew 11.1%. Financial services and insurance rose by 10.4%, while the real estate sector expanded by 7.9% and transport and storage by 7.8%. These gains reflect both domestic investment projects and sustained demand from international trade and logistics flows.

Government strategy and policy drivers

Economic leadership linked the performance to policy measures aimed at accelerating diversification, investment attraction and regulatory modernization. Abdullah bin Touq Al Marri, Minister of Economy and Tourism, pointed to leadership direction and a strategic shift toward high-value, non-oil activities as central to the results. Officials said targeted incentives, streamlined business rules and enhanced partnerships have strengthened the UAE’s competitiveness in the global market.

Statistics system and data modernization efforts

The federal statistics agency emphasized that the accuracy of the new figures stems from improvements in the national statistical system and ongoing modernization of economic data collection. Hanan Mansour Ahli, Director of the Federal Competitiveness and Statistics Center, highlighted investments in data quality, broader statistical coverage and alignment with international best practices. Enhanced data capacities are intended to better inform policy decisions and support long-term planning.

The interplay between policy, investment and private-sector dynamism underpinned the performance across multiple fronts. Public and private capital flows into infrastructure, digital economy initiatives and strategic industries added to domestic demand while enabling export-oriented expansion. Observers noted that stable macroeconomic settings and a flexible regulatory environment helped cushion external shocks and sustain business confidence.

Looking forward, policymakers and market participants will focus on maintaining momentum while managing global uncertainties such as commodity price shifts and trade cycles. Continued emphasis on technology, innovation, and higher-value services is expected to strengthen productivity and broaden revenue streams. The 2025 results provide a platform for the UAE to pursue its 2031 objectives with reinforced fiscal and institutional capacity.

The headline growth and the stronger non-oil performance together signal a structural shift in the UAE economy, with trade, finance and construction positioned as central drivers of near-term expansion.

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