UAE Economic Growth 2025: UAE Economy Accelerates to 4.9% as Non-Oil Sectors Hit Record Expansion — Vista Newswire Exclusive Analysis
Dubai, UAE — Vista Newswire (2025)
The UAE economic growth 2025 trajectory has surpassed expectations, with new data from the UAE Central Bank, Ministry of Economy, and IMF confirming a powerful surge across both oil and non-oil sectors. According to trusted reports from Reuters, IMF, and official UAE agencies, the UAE economy is set to grow between 4.8% and 4.9% in 2025, making it one of the fastest-expanding economies in the Middle East.
The UAE economic growth 2025 spike reflects the nation’s success in diversification, AI transformation, rising foreign investment, and world-leading infrastructure development.
According to Reuters, the UAE Central Bank forecasts GDP growth of 4.9% in 2025, driven by stronger oil output and robust non-hydrocarbon expansion.
This makes the UAE economic growth 2025 performance one of the strongest among advanced and emerging economies.
Key highlights:
Hydrocarbon GDP projected to grow 5.8%
Non-oil sector projected to grow 4.5%
Overall GDP projected at 4.9%
Strong contribution from services, real estate, finance, and tourism
This reinforces the UAE economic growth 2025 outlook as stable, diversified, and strategically positioned for long-term gains.
2. Non-Oil Economy Hits Record 77% of GDP
The Ministry of Economy confirms that non-oil sectors now contribute 77.3% of total GDP — the highest in UAE history.
H3 — Q1 2025 Performance
Total GDP growth: 3.9%
Non-oil sector growth: 5.3%
Manufacturing: +7.7%
Finance & Insurance: +7.0%
Real Estate: +6.6%
This surge positions the UAE economic growth 2025 model as a global benchmark for post-oil transformation.
3. IMF Confirms UAE as One of the Fastest-Growing Gulf Economies
The International Monetary Fund (IMF) projects UAE GDP growth at 4.8% for 2025, citing:
Expanding non-oil output
Strong consumer demand
Increased tourism activity
Strategic government spending
Accelerated AI and digital transformation
Infrastructure and logistics expansion
This cements UAE economic growth 2025 forecasts as consistent across multiple global institutions.
4. Key Drivers of UAE Economic Growth 2025
Expanding AI & Digital Transformation
AI adoption across fintech, e-commerce, retail, public services, and real estate has significantly boosted productivity and reduced operational costs.
Strengthening Tourism & Hospitality
Dubai and Abu Dhabi report record tourism levels with 2025 hotel occupancy rates among the highest globally.
Rising Foreign Direct Investment (FDI)
The UAE continues to attract global investors due to:
0% personal tax
9% corporate tax (competitive globally)
100% foreign ownership laws
Free zone incentives
Political stability
Real Estate Demand Remains High
Dubai and Abu Dhabi property markets continue to expand, supported by expat relocation, business migration, and strong investor sentiment.
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5. UAE Economic Growth 2025 Supported by Strong Oil Output
Higher crude production under the OPEC+ framework contributes significantly to 2025 growth.
According to Reuters:
Hydrocarbon output expected to grow 5.8%
Oil revenue supports public spending
Increased fiscal stability boosts investment confidence
The dual-engine model — oil + non-oil — makes UAE economic growth 2025 exceptionally resilient.
6. Outlook for 2025–2026: UAE to Become Regional Economic Powerhouse
Based on combined data from Reuters, UAE MOE, and IMF, experts expect the UAE economic growth 2025 momentum to extend into 2026.
Expected trends:
Non-oil sector will exceed 78% of GDP
AI-driven industries will dominate new job creation
E-commerce, fintech, logistics, and manufacturing will accelerate
UAE to attract more FDI than any GCC country
Tourism may surpass 2019 peak levels
Continued leadership in digital government
The UAE economic growth 2025 outlook is recognized globally as one of the most successful economic reform examples.
Another factor strengthening UAE economic growth in 2025 is the country’s rapid adoption of advanced manufacturing and logistics technologies. New industrial zones in Abu Dhabi and Dubai are integrating automation, AI-driven supply chain systems, and clean energy solutions, which are helping local companies increase production efficiency and reduce operational costs. These developments support the UAE’s long-term goal of becoming a leading global hub for high-value manufacturing, contributing directly to the resilience and momentum of the UAE economic growth 2025 outlook.
External Source: Reuters — https://www.reuters.com/
Economic analysts also highlight the UAE’s strategic investment partnerships with Asia, Europe, and North America as a key pillar of sustained growth. Multiple cross-border agreements in technology, renewable energy, and advanced trade infrastructure are expanding the country’s international economic footprint. These partnerships not only attract long-term capital into the Emirates but also open new export channels for local businesses. This global integration continues to reinforce confidence in the UAE economic growth 2025 forecast, positioning the nation as a central player in global trade.
Read more UAE market insights on Vista Newswire →
https://vistanewswire.com/category/ai-technology/
Author: Vista Newswire – Economic & Business Desk
Reporting Analyst: Eros Lara
Publication: Vista by Lara Media Group
Location: Dubai, United Arab Emirates
Contact: newsroom@vistanewswire.com
