UAE's Economic Resilience: Projected 6.7% GDP Growth in 2025 with Strategic Diversification and Innovation
August 9, 2025
The non-oil sector, which contributed 75.5% of the GDP in 2024, is expected to grow by 4.7% in 2025, driven by domestic demand and foreign investment.
The corporate sector is attracting income-seeking investors, particularly in financial and real estate markets, as major banks reported AED 22.2 billion in net income in the first quarter of 2025.
Sustainability initiatives, such as a $23 billion decarbonization roadmap and hosting COP28, are central to the UAE's economic strategy, positioning it as a leader in clean energy.
Tourism remains a vital economic driver, with Dubai attracting 5.3 million visitors in the first quarter of 2025, contributing to an 18.6% year-on-year increase in non-oil foreign trade.
The UAE has signed 27 Comprehensive Economic Partnership Agreements (CEPAs) to enhance trade access, resulting in a 15% year-on-year rise in non-oil exports to key markets like India and China.
Investors are advised to remain cautious of potential risks such as inflation and geopolitical tensions, emphasizing the importance of diversifying across sectors.
Overall, the UAE is positioned as a hub of resilience and opportunity, balancing strong domestic growth with favorable global trade dynamics.
The 'We the UAE 2031' vision aims to double GDP to Dh3 trillion and enhance non-oil exports to Dh800 billion, with tourism targeted to grow significantly.
Global trade agreements, particularly the U.S.-EU trade agreement, have reinforced the UAE's role as a neutral trade corridor, boosting foreign trade to AED 3.0 trillion in 2025.
In 2025, the UAE is showcasing remarkable economic resilience, with a projected GDP growth rate of up to 6.7%, fueled by strategic diversification and digital innovation.
Significant reforms over the past four years, including the modernization of over 30 economic laws and the introduction of 100% foreign ownership, have enhanced the UAE's global business appeal.
The UAE's Vision 2031 aims for top global rankings in human development and quality of life, supported by advancements in technology and sustainability.
Summary based on 2 sources
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Sources

Khaleej Times • Aug 9, 2025
Towards a vision-powered future: UAE drives growth with reforms, innovation, and investment
Ainvest • Jul 28, 2025
The UAE Market's Resilience Amid Global Trade Optimism and Domestic Dividend Payouts