The UAE economy growth 2025 story began on a strong note as real GDP rose 3.9% year-on-year in Q1, reaching $123.8 billion (AED 455 billion). According to state news agency WAM, the surge was fueled by a 5.3% expansion in non-oil activities, which hit $95.8 billion (AED 352 billion) during the period. Oil-related activities contributed 22.7% of total GDP in the quarter.
Non-Oil Sector Driving Growth
Manufacturing recorded the fastest growth rate, expanding 7.7% in Q1. The finance, insurance, and construction sectors followed with 7% growth each, while real estate grew by 6.6% and trade by 3%.
In terms of contribution, the trade sector led with 15.6% of non-oil GDP. Finance and insurance contributed 14.6%, while manufacturing accounted for 13.4%. Together, these industries underscored the economy’s resilience and diversification.
Minister of Economy and Tourism Abdullah bin Touq Al Marri praised the performance, noting it reflects investor confidence and the UAE’s ability to sustain exceptional growth. He added that non-oil activities now represent a record 77.3% of real GDP, in line with the “We the Emirates 2031” vision. This national strategy aims to raise the UAE’s GDP to $816.7 billion (AED 3 trillion) by the next decade.
Business Activity in August
The positive momentum continued later in the year. The 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 improvement reflected sharper output expansion and stronger sales intakes. Survey panellists pointed to ongoing project work and steady domestic demand as key growth drivers.
Outlook
With its diversified economic base, rising private sector investment, and robust infrastructure, the UAE is positioning itself as a regional and global growth hub. If this trajectory continues, the UAE economy growth 2025 will not only exceed expectations but also set the stage for achieving its Vision 2031 goals.
