UAE’s Economic Performance Highlights Diversification Success
The United Arab Emirates’ economy demonstrated robust growth in 2025, with its real Gross Domestic Product (GDP) expanding by 6.2 percent compared to the previous year, according to data released by the Federal Competitiveness and Statistics Centre (FCSC). This growth pushed the nation’s total GDP to an estimated AED1.9 trillion.
A key driver of this economic expansion was the non-oil sector, which saw an impressive 6.8 percent increase in 2025, reaching AED1.5 trillion. This performance underscores the UAE’s strategic focus on economic diversification and reducing its reliance on hydrocarbon revenues.
Minister Highlights Strategic Vision and Policy Effectiveness
Abdulla Bin Touq Al Marri, the Minister of Economy and Tourism, attributed the strong economic results to the leadership’s vision and the effectiveness of the UAE’s economic development strategies. He emphasized that these figures reflect the nation’s successful efforts to cultivate a diverse and sustainable economic model, bolstered by the growth in non-oil industries and the emerging role of new economic sectors. Minister Al Marri noted that this positive momentum is crucial for achieving the goals outlined in the “We the UAE 2031” vision.
He further elaborated that the UAE’s flexible economic policies, characterized by their forward-looking approach and adaptability to global economic shifts, have accelerated diversification and strengthened the country’s competitive edge and sustainable growth trajectory.
FCSC Emphasizes Stability and Future Readiness
Hanan Mansour Ahli, Managing Director of the FCSC, echoed these sentiments, stating that the economic achievements in 2025 are a testament to the success of the UAE’s development and economic policies. She highlighted their role in enhancing economic stability and competitiveness across key sectors, while continuously evolving the national economic structure towards greater diversity and efficiency.
Ahli also pointed out the UAE’s ongoing commitment to strengthening its future economic readiness through significant investments in the digital economy, technology, and innovation. This includes fostering an integrated economic ecosystem designed to support long-term growth and solidify the country’s position as a prominent global hub for business and investment.
Sectoral Contributions to Growth
Several economic sectors recorded notable growth in 2025. The construction sector led the way with an 11.1 percent increase, followed closely by the financial and insurance sector at 10.4 percent. The real estate sector grew by 7.9 percent, and the transport and storage sector saw a 7.8 percent expansion, indicating broad-based economic vitality across the UAE.
In terms of contributions to the non-oil GDP, the trade sector maintained the largest share at 16.9 percent. The financial and insurance sector contributed 13.2 percent, construction accounted for 12.9 percent, and manufacturing industries made up 12.8 percent. These figures collectively highlight the diversified nature of the national economy’s production base and the sustained contributions of various vital sectors to the overall economic prosperity.
Source: Original Article
