UAE GDP Surges 6.2% to AED 1.9 Trillion on Non-oil Growth
Fresh GDP data shows diversification efforts gaining traction, with non-oil sectors expanding faster than the broader economy.
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[Image: PankajKirdatt/MITSMR Middle East]
The UAE economy expanded strongly in 2025, highlighting the growing importance of its non-oil sectors as the country advances its long-term diversification agenda.
According to data from the Federal Competitiveness and Statistics Center, real gross domestic product (GDP) rose 6.2% year-on-year to $517.3 billion (AED 1.9 trillion), while non-oil GDP grew an even faster 6.8% to $408.4 billion (AED 1.5 trillion).
The figures reinforce the UAE’s position as one of the Gulf’s fastest-growing economies and highlight the effectiveness of policies aimed at reducing dependence on hydrocarbon revenues. Non-oil activities now account for the overwhelming majority of economic output, reflecting years of investment in sectors such as finance, tourism, trade, logistics, manufacturing, and real estate.
Abdulla bin Touq Al Marri, UAE’s Minister of Economy and Tourism, said the results demonstrate sustained progress toward the goals outlined in the country’s “We the UAE 2031” strategy. He attributed the performance to continued policy support and economic reforms designed to strengthen competitiveness and attract investment.
Among non-oil industries, construction, financial, and real estate recorded the strongest growth rates. Construction emerged as the fastest-growing sector, expanding 11.1%, followed by finance and insurance services at 10.4%. Real estate grew 7.9%, while transport and storage climbed 7.8%.
Largest contributors to non-oil GDP were trade at 16.9%, finance and insurance at 13.2%, construction at 12.9%, and manufacturing at 12.8%.
Looking ahead, the momentum is expected to remain robust despite ongoing geopolitical uncertainty in the region. The UAE Central Bank forecasts GDP growth of 5.6% in 2026, driven primarily by continued expansion in non-oil sectors. If achieved, the growth rate would exceed the GCC average of 4.8%, positioning the UAE as the region’s second-fastest-growing economy after Qatar, which is projected to expand by 6.1%.
