The United Arab Emirates economy continues to demonstrate robust growth and diversification, wiht new data revealing a 4.2% expansion in real GDP during the first half of 2025. Released yesterday by the Federal Competitiveness and Statistics Center, the figures highlight a important shift away from reliance on hydrocarbons, as non-oil sectors now account for 77.5% of the nation’s economic output. This sustained momentum signals the success of ongoing economic strategies and positions the UAE firmly on track to meet it’s ‘We the UAE 2031’ vision.
The United Arab Emirates’ real GDP grew by 4.2% to AED 929 billion (approximately $253 billion USD) in the first half of 2025, according to data released yesterday by the Federal Competitiveness and Statistics Centre. The non-oil GDP experienced even stronger growth, rising 5.7% to AED 720 billion (roughly $196 billion USD).
The data reveals a continuing shift in the UAE’s economic structure, with non-oil activities now accounting for 77.5% of the nation’s real GDP, while oil-related sectors contribute the remaining 22.5% during the first six months of 2025.
Leading the growth among sectors were finance and insurance, which saw an 8.3% increase, followed by construction with a 7.9% rise. Manufacturing industries grew by 7%, and real estate activity expanded by 6.5%.
Within the non-oil economy, trade was the largest contributor to GDP, representing 16.1% of the total. Finance and insurance followed with a 14.0% share, while manufacturing accounted for 13.8%. Construction contributed 11.8%, and real estate made up 7.8% of the non-oil GDP.
Abdullah bin Touq Al Marri, Minister of Economy and Tourism, emphasized the UAE’s proactive approach to economic changes. “Thanks to the guidance of our wise leadership, the state has adopted a proactive approach based on keeping pace with local, regional, and global economic variables and trends,” he said. “This is reflected in the development of competitive economic strategies and legislation, enhancing economic openness to the world, and creating a business environment that stimulates the private sector’s participation in the growth of non-oil sectors.”
“The positive results achieved by the national economy during the first half of 2025, most notably the 5.7% growth in non-oil GDP, reflect the strength and competitiveness of the state’s economic performance and the efficiency of the economic policies pursued by the UAE government,” Al Marri added. “It also confirms our steady steps towards reducing dependence on oil, strengthening national non-oil industries, and achieving the economic goals of the ‘We the UAE 2031’ vision.”
Hanane Mansour Al Ali, Director of the Federal Competitiveness and Statistics Centre, highlighted the resilience of the UAE economy. “The strong GDP performance during the first half of 2025, reaching AED 929 billion, reflects the robustness of the UAE’s national economy and the continued momentum of growth driven by non-oil activities such as trade, manufacturing, and construction,” she stated.
“The increase in the contribution of non-oil sectors to 77.5% confirms the success of the state’s economic diversification policies and its ability to create a flexible and sustainable productive environment based on knowledge and innovation, keeping pace with the state’s direction towards building the economy of the future,” Al Ali concluded.
AED 929 billion: The UAE’s total GDP for the first six months, with 4.2% growth.
Finance, insurance, construction, and building are the fastest-growing sectors.
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