The UAE economy growth 2025 figures show a strong start to the year, with real GDP expanding 3.9% year-on-year in Q1 to $123.8 billion (AED 455 billion). According to WAM, the surge was fueled by a 5.3% rise in non-oil activities, reinforcing the nation’s diversification efforts.
Key Q1 Results
Non-oil GDP climbed to $95.8 billion (AED 352 billion), contributing a record 77.3% of total GDP. Oil-related activities accounted for 22.7% of overall output in the same period.
Manufacturing led growth with a 7.7% expansion, followed by finance, insurance, and construction at 7% each. Real estate rose 6.6%, while trade grew 3%. The trade sector contributed the most to non-oil GDP at 15.6%, ahead of finance and insurance at 14.6%, and manufacturing at 13.4%.
Minister of Economy and Tourism Abdullah bin Touq Al Marri praised the results, highlighting resilience and investor confidence in the UAE’s business environment. He added that the growth aligns with the “We the Emirates 2031” vision, which aims to lift GDP to $816.7 billion (AED 3 trillion) within the next decade.
August Non-Oil Business Activity
The UAE’s S&P Global Purchasing Managers’ Index (PMI) climbed to 53.3 in August, up from a 49-month low of 52.9 in July. The reading, above the neutral 50 mark, signaled stronger private sector performance.
The improvement reflected faster output growth, higher sales, and ongoing project momentum, with local market demand continuing to underpin expansion. Analysts noted that the PMI’s rebound was the fastest in six months, slightly surpassing long-term trends.
Outlook
The latest figures confirm that the UAE economy growth 2025 is being driven by non-oil diversification, especially in manufacturing, trade, and finance. With policy reforms and Vision 2031 targets in place, the UAE is on track to sustain its role as one of the region’s most dynamic and resilient economies.
