The United Arab Emirates has strengthened its position as one of the world’s fastest-growing economies after reporting a 6.2% increase in real gross domestic product in 2025, taking the country’s economy to an impressive Dh1.9 trillion.
Fresh data released by the Federal Competitiveness and Statistics Centre revealed that the UAE’s non-oil economy continued to be the primary engine of growth.
Non-oil GDP climbed by 6.8% year-on-year to Dh1.5 trillion, highlighting the success of the nation’s long-term diversification strategy and reducing dependence on hydrocarbon revenues.
The latest figures arrive at a time when global economic uncertainty continues to challenge many major economies.
However, the UAE has managed to sustain momentum by investing aggressively in infrastructure, technology, innovation and business-friendly reforms.
Minister of Economy and Tourism Abdulla Bin Touq Al Marri said the country’s strong performance reflects the leadership’s commitment to building a diversified and sustainable economic model capable of driving long-term prosperity.
According to the minister, robust expansion across non-oil industries and emerging economy sectors continues to strengthen the UAE’s competitiveness while supporting the ambitions outlined in the “We the UAE 2031” vision.
The government’s strategy has increasingly focused on attracting global investors, supporting entrepreneurship, accelerating digital transformation and creating an environment that encourages private sector growth.
As a result, several industries delivered standout performances throughout 2025.
Construction emerged as the fastest-growing sector, expanding by 11.1%. The growth reflects ongoing investments in infrastructure, housing developments, commercial projects and large-scale urban expansion across the country.
The financial and insurance sector followed closely with growth of 10.4%, benefiting from increased investment activity, rising demand for financial services and the UAE’s growing reputation as a regional financial hub.
Meanwhile, the real estate sector expanded by 7.9%, supported by strong investor confidence, population growth and continued demand for residential and commercial properties.
The transport and storage sector also recorded significant growth of 7.8%, demonstrating the country’s strategic importance as a global logistics and trade gateway connecting Asia, Europe and Africa.
Hanan Mansour Ahli, Managing Director of the Federal Competitiveness and Statistics Centre, said the latest results underline the effectiveness of the UAE’s economic policies in strengthening stability, improving competitiveness and creating a more diversified economy.
She noted that continued investments in digital infrastructure, innovation and advanced technologies are helping prepare the UAE for the next phase of global economic transformation while enhancing its attractiveness to international businesses and investors.
Trade remained the largest contributor to non-oil GDP, accounting for 16.9% of economic activity. The financial and insurance sector contributed 13.2%, while construction represented 12.9%. Manufacturing industries accounted for 12.8%, demonstrating the broad-based nature of the country’s economic expansion.
The strength of these sectors highlights a significant shift in the UAE’s economic structure. Instead of relying primarily on oil revenues, the country is increasingly generating growth from commerce, finance, industry, technology and services.
As competition intensifies among global investment destinations, the UAE’s economic performance provides further evidence that diversification remains one of the most effective strategies for achieving sustainable growth.
With GDP approaching Dh2 trillion and non-oil industries driving a larger share of economic activity than ever before, the UAE appears well-positioned to strengthen its status as a leading global business, investment and innovation hub over the coming decade.
For investors, entrepreneurs and multinational corporations seeking opportunities in the Middle East, the UAE’s latest economic results send a clear message: the country’s growth story is accelerating, and its transformation into a diversified economic powerhouse is gaining momentum.
