The United Arab Emirates recorded strong economic growth in 2025, with real gross domestic product (GDP) expanding by 6.2% year-on-year to reach Dh1.9 trillion, driven by robust performance across key non-oil sectors, according to data released by the Federal Competitiveness and Statistics Centre (FCSC). The figures underscore the UAE’s continued progress in diversifying its economy beyond hydrocarbons, with non-oil activities accounting for a significant share of overall growth.
According to the FCSC, non-oil GDP rose by 6.8% during 2025 compared with the previous year, reaching Dh1.5 trillion and reinforcing the country’s long-term strategy to build a sustainable and diversified economic model.
Non-Oil Sectors Drive Economic Momentum
Commenting on the latest figures, Abdulla Bin Touq Al Marri said the UAE economy continues to deliver strong results under the leadership of Sheikh Mohamed bin Zayed Al Nahyan and the guidance of Sheikh Mohammed bin Rashid Al Maktoum.
He said the latest economic performance reflects the success of the UAE’s strategy to develop a diversified economy supported by strong growth in non-oil industries and emerging sectors.
According to the minister, the continued expansion strengthens the country's progress toward achieving the goals outlined in the We the UAE 2031 vision, which aims to position the UAE among the world's leading economies over the coming decade.
Bin Touq added that flexible economic policies and proactive planning have enabled the country to respond effectively to global economic changes while accelerating diversification efforts and enhancing competitiveness.
Construction Sector Leads Growth
The UAE’s construction sector emerged as the fastest-growing segment of the economy in 2025, expanding by 11.1% compared with the previous year.
The strong performance reflects continued investment in infrastructure projects, urban development initiatives and large-scale real estate ventures across the country.
The financial and insurance sector followed with growth of 10.4%, benefiting from increased economic activity, investment flows and financial services demand.
Meanwhile, the real estate sector expanded by 7.9%, supported by sustained investor interest and strong property market activity, while the transport and storage sector grew by 7.8% amid rising trade and logistics demand.
The broad-based expansion highlights the resilience of the UAE economy and the strength of multiple growth drivers beyond the energy sector.
UAE Strengthens Position as Global Business Hub
Hanan Mansour Ahli said the latest economic results demonstrate the effectiveness of the UAE’s development strategy in strengthening stability, competitiveness and long-term growth.
She noted that the country continues to invest heavily in digital transformation, innovation and advanced technologies to enhance future economic readiness.
According to Ahli, the UAE is developing an integrated economic ecosystem designed to attract investment, support entrepreneurship and reinforce its position as a global destination for business and commerce.
Trade Remains Largest Contributor to Non-Oil Economy
Despite strong growth in construction and financial services, trade remained the largest contributor to the UAE’s non-oil economy during 2025.
Official data showed the trade sector accounted for 16.9% of non-oil GDP, followed by financial and insurance activities at 13.2%, construction at 12.9%, and manufacturing industries at 12.8%.
The figures highlight the increasing diversity of the UAE’s economic base and the growing contribution of multiple industries to national output.
Economists say the continued expansion of non-oil sectors reflects the success of government initiatives aimed at reducing dependence on hydrocarbons while creating new engines of sustainable growth.
With major investments in technology, infrastructure, tourism, finance and advanced manufacturing, the UAE is expected to maintain strong economic momentum as it advances its long-term development agenda.
Key Highlights
- UAE real GDP grew 6.2% in 2025 to reach Dh1.9 trillion.
- Non-oil GDP increased 6.8% to Dh1.5 trillion.
- Construction led sectoral growth with an 11.1% expansion.
- Financial and insurance activities rose 10.4%.
- Real estate and transport sectors grew 7.9% and 7.8%, respectively.
- Trade remained the largest contributor to non-oil GDP at 16.9%.
- Officials credited economic diversification and investment in innovation for the strong performance.
Comments 0
No comments yet. Be the first to share your thoughts.
Leave a comment
Your email is never published. All fields are required.