By Business Reporter
The United Arab Emirates recorded robust economic expansion in the first nine months of 2025, with real GDP rising 5.1 percent year-on-year to nearly AED 1.4 trillion, signaling sustained momentum in its structural shift toward a diversified growth model.
Data released by the Federal Competitiveness and Statistics Centre indicates that the non-oil economy expanded 6.1 percent, exceeding AED 1 trillion in value for the period. The stronger performance of non-hydrocarbon activities reinforces the country’s long-term strategy of reducing oil dependency while enhancing productivity across high-value sectors.
Minister of Economy and Tourism Abdulla bin Touq Al Marri described the results as evidence of the UAE’s “accelerating diversification trajectory,” supported by regulatory reforms, foreign investment inflows, and a competitive pro-business environment.
Sectoral Performance Signals Broad-Based Expansion
Growth was led by financial and insurance activities, which expanded 9 percent, reflecting increased capital flows, credit activity, and continued positioning of the UAE as a regional financial hub.
Construction rose 8.7 percent, supported by infrastructure development and real estate pipeline activity, while the real estate sector grew 7.9 percent, underpinned by sustained investor demand and population growth. Manufacturing advanced 6.9 percent, suggesting ongoing industrial capacity development and supply-chain strengthening.
Wholesale and retail trade remained the largest contributor to non-oil GDP at 16.1 percent, highlighting resilient domestic consumption and tourism-related spending.
Strategic Outlook
The performance aligns with the national development blueprint, We the UAE 2031, which targets GDP expansion to AED 3 trillion within the next decade. Policymakers continue to emphasize technology adoption, innovation ecosystems, and private-sector competitiveness as central pillars of long-term growth.
Hanan Ahli, Managing Director of the statistics centre, noted that the integration of advanced technologies and artificial intelligence into statistical systems has enhanced data-driven policymaking, improving responsiveness to global economic shifts.
Investment Implications
The latest data positions the UAE as one of the region’s fastest-growing diversified economies in 2025. The outperformance of non-oil sectors relative to headline GDP suggests strengthening structural fundamentals, improved sectoral balance, and greater insulation from hydrocarbon price volatility.
If current momentum is sustained, the UAE appears well on track to meet its medium-term diversification targets while reinforcing its status as a regional hub for finance, trade, logistics, and advanced manufacturing.
