Non-oil growth adds to rising UAE GDP

The UAE’s real GDP – the inflation-adjusted value of all goods and services in a year – grew by 6.2 percent year on year to AED1.9 trillion ($517 billion) in 2025, according to official data.

Non-oil GDP increased by 6.8 percent to AED1.5 trillion, the UAE state-run Wam news agency reported, quoting the Federal Competitiveness and Statistics Centre.

Economy and tourism minister Abdulla Bin Touq Al Marri said the latest economic results reflect the effectiveness of the UAE’s strategy to develop a diversified and sustainable economic model, supported by robust growth in non-oil sectors and the rising role of new-economy industries.

Several economic sectors recorded strong performance.

The construction sector led growth with an increase of 11.1 percent, followed by the financial and insurance sector at 10.4 percent, real estate at 7.9 percent, and the transport and storage sector at 7.8 percent.

Trade’s contribution to non-oil GDP was the largest at 16.9 percent, followed by finance and insurance at 13.2 percent. Manufacturing industries stood at 12.8 percent and construction at 12.9 percent,.

In May, Fitch Ratings projected that the UAE’s real GDP would shrink 4.8 percent in 2026, while non-oil GDP was expected to contract 3.2 percent.

Dubai’s GDP is forecast to shrink nearly 7 percent this year, while real GDP is expected to remain below its 2025 level in 2027 as investment and the return of tourism and expat inflows remain slow.

Fitch expects the Emirates to maintain a budget surplus in 2026 despite a substantial increase in spending to cushion the immediate impact of the Iran war.

Further reading:

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