UAE non-oil GDP jumps 6.8% in 2025

The economy grew at its fastest pace since 2022 last year, increasing 6.2%, with the non-oil sector once again doing most of the heavy lifting as construction, finance, real estate, and transport powered growth across the country, state news agency Wam reports. Real GDP reached AED 1.9 tn during the year, with non-oil GDP growing 6.8% to AED 1.5 tn.

By sector: Construction emerged as the fastest-growing sector of the economy last year, expanding 11.1%, followed by financial and ins. activities at 10.4%. Real estate grew 7.9%, while transport and storage climbed 7.8%.

Trade remained the single largest contributor to the non-oil economy, accounting for 16.9% of non-oil GDP, followed by financial and ins. activities at 13.2%, construction at 12.9%, and manufacturing at 12.8%.

That’s mostly thanks to the UAE’s growing CEPA program. The total value of goods and services traded hit AED 6 tn in 2025, with the Emirates’ ever-expanding CEPA network a major driver of growth. The UAE is aiming to reach AED 4 tn in total foreign trade by 2031 and is already well on its way, having clocked AED 3 tn in total foreign trade two years ago.

In context

The data for last year was great, but we likely won’t see those figures this year. Before the conflict, the UAE’s economy was comfortably projected to grow above the 5% mark, with the Central Bank of the UAE expecting it to expand by 5.3%. Since the war, however, the IMF revised its forecast down to 3.1%, while BMI sees GDP growing at 1.4% — others are even more pessimistic, with Goldman Sachs expecting a full-on contraction (of up to 5%).