UAE Emerges As A Top Global Growth Engine In 2025

The United Arab Emirates reports strong momentum in 2025, as real GDP and non-oil activity both expand and external confidence remains high. International institutions raise growth projections, ratings agencies keep sovereign grades stable, and new national initiatives aim to deepen investment flows, strengthen trade links and support entrepreneurs across multiple sectors of the UAE economy.

Real GDP grows 4.2 percent year-on-year in the first half of 2025, reaching AED929 billion. Non-oil output rises 5.7 percent to AED720 billion, equal to 77.5 percent of real GDP, while oil activities contribute 22.5 percent. The International Monetary Fund lifts its 2025 UAE growth forecast to 4.8 percent, citing steady expansion across non-oil sectors.

Non-oil foreign trade in the UAE climbs 24.5 percent in the first six months of 2025, totalling AED1.7 trillion. That pace is around 14 times faster than global trade growth. The UAE also strengthens its role as a trade gateway through wider comprehensive economic partnership agreements and the "UAE Global Centre of Trade" programme targeting 1,000 major trading companies.

The "UAE Global Centre of Trade" programme introduces a digital gateway that links thousands of UAE exporters with overseas markets. By the end of September 2025, the UAE records 402,311 registered national and international trademarks. Nearly 20,000 trademarks are registered in the first half alone, an increase of 129 percent compared with the same period in 2024.

The Cabinet approves the National Investment Strategy 2031, which features 12 programmes and 30 initiatives. The plan targets annual foreign investment inflows of AED240 billion by 2031, up from AED112 billion in 2023. It also seeks to raise total foreign investment stock from AED800 billion to AED2.2 trillion over the same period.

According to the UN Conference on Trade and Development World Investment Report 2025, the UAE ranks 10th worldwide for inbound foreign direct investment in 2024, with inflows of AED167.6 billion. The Cabinet agrees to form the National Investment Fund with initial capital of AED36.7 billion and endorses the UAE Strategy for Islamic Finance and Halal Industry to support the country’s global financial role.

Ratings agencies Fitch, Moody’s and S&P Global affirm the UAE’s sovereign ratings, highlighting solid economic performance and prudent fiscal policy. The UAE authorises a record Federal Budget for 2026 of AED92.4 billion. Central Bank of the UAE figures show gross banking assets reach AED5,199.9 billion by September 2025, while gross credit rises to AED2,478.8 billion in the same period.

The Central Bank of the UAE launches the National Financial Inclusion Strategy 2026–2030 to widen access to financial services and support financial stability. In parallel, the Ministry of Industry and Advanced Technology signs five memoranda of understanding with national banks to provide more than AED40 billion in financing to industrial companies and projects across key manufacturing segments.

The fourth "Make it in the Emirates" platform closes with industrial projects worth over AED11 billion and attendance exceeding 122,000 visitors. In 2025, authorities launch the "UAE Future 50" initiative across 15 sectors, alongside a national campaign that positions the country as a global hub for entrepreneurs, aiming to train and incubate 10,000 entrepreneurs.

More than 220,000 new companies are registered between January and end-November 2025, alongside over 36,000 new trademarks, 48.2 percent higher than a year earlier. These trends, combined with expanded trade agreements, strong banking indicators and long-term investment strategies, reinforce the UAE’s objective of sustaining diversified growth and maintaining its role as an international economic centre.

With inputs from WAM