The UAE economy growth 2025 story began on a strong note, with real GDP expanding 3.9% year-on-year in Q1 2025 to reach $123.8 billion (AED 455 billion). The momentum was fueled by a 5.3% surge in non-oil activities, according to data released by state news agency WAM.
Non-Oil Sector Drives Expansion
Non-oil GDP climbed to $95.8 billion (AED 352 billion), marking a record contribution of 77.3% to total real GDP. Oil activities accounted for 22.7%. Manufacturing emerged as the fastest-growing sector, expanding by 7.7%, followed closely by finance, insurance, and construction at 7% each. Real estate advanced 6.6%, while trade grew 3%.
Trade remained the top contributor to non-oil GDP with 15.6%, followed by finance and insurance at 14.6%, and manufacturing at 13.4%.
Ministerial Outlook
Minister of Economy and Tourism Abdullah bin Touq Al Marri praised the performance, calling it proof of the UAE’s resilience and attractiveness to global investors. He noted that the results align with the country’s long-term strategy, We the Emirates 2031, which targets raising GDP to $816.7 billion (AED 3 trillion) within the next decade.
August Business Activity
The country’s growth momentum carried into the third quarter. The S&P Global UAE Purchasing Managers’ Index (PMI) rose to 53.3 in August, up from a 49-month low of 52.9 in July. The PMI uptick reflected stronger output, higher sales, and steady project activity, with analysts describing the pace as the fastest in six months.
Businesses surveyed highlighted growth in local demand and ongoing projects as key drivers of expansion, reinforcing optimism for continued economic strength in the months ahead.
Conclusion
The robust UAE economy growth 2025 highlights the nation’s successful diversification strategy. With non-oil sectors leading the charge and investor confidence high, the UAE remains firmly on track to meet its long-term economic goals.
