UAE's Economic Resilience: Projected 6.7% GDP Growth in 2025 with Strategic Diversification and Innovation

August 9, 2025
UAE's Economic Resilience: Projected 6.7% GDP Growth in 2025 with Strategic Diversification and Innovation
  • 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


Get a daily email with more Macroeconomics stories

More Stories