The UAE economy growth 2025 trend began strongly, with real GDP expanding 3.9% year-on-year in Q1 to $123.8 billion (AED 455 billion). The increase was driven by a 5.3% rise in non-oil activities, which contributed a record 77.3% to total GDP, according to WAM.
Non-Oil Sector Leads Growth
The UAE’s non-oil GDP rose to $95.8 billion (AED 352 billion). Key drivers included:
- Manufacturing: up 7.7%
- Finance and insurance: up 7%
- Construction: up 7%
- Real estate: up 6.6%
- Trade: up 3%
The trade sector accounted for the largest share of non-oil GDP at 15.6%. Finance and insurance followed with 14.6%, while manufacturing contributed 13.4%.
Minister of Economy and Tourism Abdullah bin Touq Al Marri said the results confirm the resilience of the UAE economy and growing investor confidence. He noted the performance aligns with the “We the Emirates 2031” vision, which targets GDP expansion to $816.7 billion (AED 3 trillion) by the next decade.
Oil and Global Context
Oil activities represented 22.7% of GDP in Q1. While global economic pressures persist, the UAE continues to position itself as a diversified economy less reliant on hydrocarbons.
August PMI Signals Stronger Activity
The S&P Global UAE Purchasing Managers’ Index (PMI) rose to 53.3 in August, up from July’s 49-month low of 52.9. The survey showed the fastest rise in output in six months, supported by higher sales, ongoing projects, and growing domestic demand.
Outlook
The strong start to 2025 highlights the UAE’s ability to withstand global volatility while maintaining momentum in non-oil sectors. Analysts expect continued strength in manufacturing, finance, and real estate to underpin further UAE economy growth in 2025, boosting competitiveness and investment appeal.
