The UAE economy expanded about 6.2% in 2025, which lifted the gross domestic product (GDP) to around AED 1.9 trillion. Fresh figures, put out by the government show that the pace mostly came from activity outside the oil sector, and it was a big part of the rise.
Non-oil GDP climbed 6.8% over the year, ending at AED 1.5 trillion. These data provide yet another clue about how the country’s economic blend is shifting, with a higher portion of output being generated by sectors beyond the energy business.
The UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri said the outcomes match the intent behind the ‘We the UAE 2031’ vision. He added that a set of key industries kept up a solid performance during the whole year.
Businesses beyond the oil industry actually beat the broader economy in 2025. Their role in overall GDP exceeded expectations.
This change feels gradual rather than sudden, but the path is getting more obvious each time new economic data is released. Thus, sectors like trade, manufacturing, finance, and real estate are contributing to a larger part of the national output, slowly yet steadily.
Trade along with manufacturing was still the biggest driver within the non-oil GDP sector. The fact that it repeatedly shows up at the top of the rankings, emphasizes how essential this industry is for the country’s economic activity.
Construction was among the strongest-performing sectors during the year. Ongoing development projects and investment activity helped support growth across the industry.
The sector's performance reflects continued demand linked to infrastructure and urban development initiatives.
Financial and insurance activities recorded strong growth in 2025, supported by rising business activity and expanding financial services.
The real estate sector also delivered a solid performance and remained a major contributor to economic expansion. Strong investor interest and sustained market activity supported growth throughout the year.
Trade and manufacturing continued to account for the largest share of non-oil GDP, highlighting their importance to the UAE economy.
The near term picture is largely positive. According to the UAE Central Bank’s March projections GDP growth should land at 5.6% in 2026.
A majority of this rise is likely to be driven by non-oil activities. The Central Bank also expects the UAE to beat the GCC average growth rate of 4.8% by next year.
If these forecasts end up materializing, then the UAE would become the Gulf’s second fastest growing economy, only behind Qatar. The latter is expected to post a growth of 6.1%.
Beyond the obvious headline figures, the most recent data offers a wider view. The country’s economic foundation is becoming diverse, with several sectors adding to the expansion. This shift doesn’t erase the significance of oil, but it does mean the UAE is less tied to a single well of growth, and ready to handle changes in global markets.
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