The UAE economy growth 2025 numbers show a strong start, with GDP rising 3.9% year-on-year in Q1 to $123.8 billion (AED 455 billion). According to state news agency WAM, the expansion was fueled by a 5.3% surge in non-oil activities, which contributed $95.8 billion (AED 352 billion).
Sector Performance
Manufacturing recorded the highest growth rate at 7.7% during the quarter. Finance, insurance, and construction each grew 7%, while real estate climbed 6.6% and trade advanced 3%.
The trade sector contributed 15.6% to non-oil GDP, making it the top contributor. Finance and insurance followed with 14.6%, and manufacturing accounted for 13.4%.
Minister of Economy and Tourism Abdullah bin Touq Al Marri said the results underscore the UAE’s economic resilience and strong investment appeal. He noted that non-oil activities now make up 77.3% of real GDP, a record high, aligning with the “We the Emirates 2031” vision, which aims to lift GDP to $816.7 billion (AED 3 trillion) by the next decade.
Non-Oil Activity Momentum
The momentum carried into Q3. The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) rose to 53.3 in August, up from a 49-month low of 52.9 in July.
The report cited faster expansion in output and stronger sales as key drivers. Businesses pointed to higher demand, ongoing project activity, and growth in local markets as signs of renewed confidence.
Outlook
The solid UAE economy growth 2025 performance reflects a well-diversified strategy. Non-oil sectors like manufacturing, finance, and real estate are taking the lead, ensuring sustainable progress even amid global uncertainty. With rising private investment and steady business activity, the UAE remains on track to meet its long-term development targets.
