The UAE’s economy posted robust growth in the first quarter of 2025, with real Gross Domestic Product (GDP) rising 3.9 per cent to AED455bn ($124bn) compared to the same period last year, according to preliminary figures from the Federal Competitiveness and Statistics Centre.
Non-oil UAE GDP expanded by 5.3 per cent to AED352bn ($95.9bn), while oil-related activities accounted for 22.7 per cent of total GDP in Q1.
Abdulla bin Touq Al Marri, Minister of Economy and Tourism, said: “The preliminary estimates released by the Federal Competitiveness and Statistics Centre for the first quarter of 2025 reaffirm the strength and resilience of the UAE economy and its capacity to sustain exceptional growth.
UAE GDP
“They also highlight the success of the nation’s comprehensive development model and reflect the confidence of investors and the international community in the country’s business and investment environment, which has become a global benchmark for progressive economic policies and a legislative framework that drives sustainable growth.
“Thanks to the directives of the wise leadership, the contribution of non-oil activities to real GDP reached a record 77.3 per cent in the first quarter – the highest in the country’s history.
“This reflects the strong momentum of the UAE’s economic diversification drive and underscores the effectiveness of national policies and strategies aimed at building an economic model based on knowledge and innovation, in line with the objectives of the ‘We the UAE 2031’ vision, which seeks to raise the country’s GDP to AED3tn ($816bn) by the next decade.”
Hanan Mansoor Ahli, Director of the Federal Competitiveness and Statistics Centre, said the Q1 performance demonstrates the effectiveness of the UAE’s economic model.
She said: “The UAE’s GDP growth in the first quarter of 2025 highlights the efficiency of the country’s economic model and demonstrates the government’s success in implementing the leadership’s directives to develop economic sectors on sustainable foundations, while strengthening diversification efforts to ensure continued GDP growth and long-term economic development.”
She added that the non-oil GDP’s 5 per cent growth reflects the UAE’s focus on building a technology-driven, diversified economy that enables businesses and innovators to transform ideas into successful ventures.
Fastest-growing sectors
- Manufacturing: up 7.7 per cent in Q1 2025
- Finance and insurance: up 7 per cent
- Construction: up 7 per cent
- Real estate activities: up 6.6 per cent
- Trade activities: up 3 per cent
In terms of contribution to non-oil GDP:
- Trade: 15.6 per cent
- Finance and insurance: 14.6 per cent
- Manufacturing: 13.4 per cent
- Construction: 12.0 per cent
- Real estate: 7.4 per cent
The figures highlight how the UAE’s diversification strategy is driving growth across multiple industries, reinforcing its position as one of the region’s most resilient and forward-looking economies.
