The UAE’s non-oil economy surpassed the AED 1 tn mark in the first nine months of 2025, propelling a 5.1% y-o-y expansion in total GDP, state news agency Wam reports, citing Economy and Tourism Minister Abdulla bin Touq Al Marri. The latest data from the Federal Competitiveness and Statistics Center (FCSC) shows the non-oil sector grew 6.1% during the period, accounting for the vast majority of the country’s AED 1.4 tn economy.

The breakdown: While construction went up 8.7% and real estate grew 7.9%, financial and ins. activities led the charge with a 9% jump. Manufacturing grew at a 6.9% clip while remaining the second biggest contributor with nearly 13.9% of non-oil GDP — trailing only wholesale and retail trade, which represented the largest component at 16.1%.

Finance and ins., manufacturing, and tourism are the key drivers of the non-oil growth, economist Hamzeh Al Gaaod tells EnterpriseAM. However, Al Gaaod strikes a note of caution on the property front, suggesting the massive surge in real estate prices could be “a price bubble” and not the core story. He added that while aviation remains strong, “air travel on transit flights, not tourism specific, is slightly slowing down in growth.”

Why it matters: The UAE is successfully diversifying its growth engines away from the volatility of crude prices. Now the government is leaning harder into “knowledge-based” sectors like AI and tech integration to maintain this 6%+ non-oil clip, as FCSC Managing Director Hanan Ahli told Wam.

What’s next: For 2026, the non-oil sector remains a key driver of economic growth, though with the risk of heightened geopolitical tensions, which could impact growth compared to 2025, Al Gaaod said.

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