The United Arab Emirates (UAE) continues to demonstrate remarkable economic resilience and diversification, achieving a significant milestone in its growth trajectory. Recent data released by the Federal Competitiveness and Statistics Centre (FCSC) reveals a robust economic growth of 4.2%, reaching AED 929 billion in the first half of 2025, compared to the same period in 2024. This positive performance underscores the success of the UAE’s strategic initiatives aimed at reducing reliance on oil and fostering a dynamic, knowledge-based economy.
UAE’s Impressive Economic Performance in H1 2025
The FCSC report highlights a particularly strong showing from the non-oil sector, which expanded by 5.7% to AED 720 billion. This surge signifies a fundamental shift in the UAE’s economic structure, with non-oil activities now contributing a substantial 77.5% to the overall real GDP. Oil sector activities accounted for the remaining 22.5%. This balance is a testament to the proactive policies implemented by the UAE government.
The figures clearly demonstrate the effectiveness of the UAE’s long-term vision for economic diversification. This vision isn’t simply about lessening dependence on hydrocarbons; it’s about building a sustainable and competitive economy capable of thriving in the global landscape. The consistent growth in non-oil sectors is a key indicator of this success.
Government Strategy and Vision 2031
His Excellency Abdullah bin Touq Al Mari, Minister of Economy and Tourism, emphasized that the UAE’s success is rooted in the forward-thinking leadership and a commitment to adapting to evolving global economic trends. He stated that the development of competitive economic strategies, the promotion of economic openness, and the creation of a business-friendly environment have been instrumental in attracting private sector investment and driving growth in non-oil sectors.
Furthermore, the UAE is actively investing in technology localization and digital transformation across vital economic sectors. This commitment to innovation is positioning the nation as a leading model for economic diversification and supporting its ambition to become a global hub for the new economy by the next decade. The focus on digital infrastructure and skills development is crucial for sustaining this momentum.
“The positive results achieved by the national economy during the first half of 2025, particularly the 5.7% growth in non-oil GDP, reflect the strength and competitiveness of the state’s economic performance and the efficiency of the economic policies followed by the UAE government,” Al Mari noted. He also affirmed the nation’s steady progress towards reducing oil dependence and bolstering national non-oil industries, aligning with the objectives of the “We the UAE 2031” vision.
Sectoral Breakdown and Key Drivers of Growth
The FCSC report provides a detailed breakdown of sectoral performance. The financial and insurance activities led the way with an impressive 8.3% growth rate, followed closely by the construction sector at 7.9%. Manufacturing industries also experienced significant expansion, growing by 7.0%, while real estate activities increased by 6.5%.
These figures highlight the diversification already taking place within the UAE economy. The strong performance of the financial sector, for example, reflects the country’s position as a regional financial hub. The growth in construction and real estate indicates continued investment in infrastructure and property development. Manufacturing’s expansion points to a growing industrial base.
Looking at the contribution to non-oil GDP, the trade sector emerged as the largest contributor, accounting for 16.1%. Financial and insurance services followed with a 14.0% share, while manufacturing contributed 13.8% and construction 11.8%. Real estate accounted for 7.8% of the non-oil GDP. This demonstrates the breadth of the UAE’s economic sectors and their interconnectedness.
Regional Leadership and Sustainable Growth
Hanane Mansour Al Ali, Director of the FCSC, underscored the resilience of the UAE’s national economy, evidenced by the strong GDP performance of AED 929 billion in the first half of 2025. She attributed this growth to the continued momentum driven by non-oil activities such as trade, manufacturing, construction, and real estate.
Al Ali emphasized that the increased contribution of non-oil sectors to 77.5% validates the success of the country’s economic diversification policies and its ability to foster a flexible and sustainable production environment based on knowledge and innovation. This environment is crucial for aligning with the UAE’s vision of building a future-ready economy.
Furthermore, the report noted that economies across the Gulf Cooperation Council (GCC) experienced positive growth during the same period. However, the UAE stood out with the highest growth rates, driven by its thriving non-oil sectors. This success reflects the positive outcomes of strategic initiatives aimed at enhancing economic diversification within the UAE and contributing to a shared economic path across the GCC, fostering regional economic stability and progress. The UAE’s leadership in this area is a positive sign for the entire region.
In conclusion, the UAE’s impressive economic growth in the first half of 2025, particularly the strong performance of its non-oil sectors, is a clear indication of the success of its diversification strategy. The nation’s commitment to innovation, a business-friendly environment, and strategic investments are positioning it for continued prosperity and solidifying its role as a global economic leader. For further insights into the UAE’s economic landscape, explore the latest reports from the Federal Competitiveness and Statistics Centre and stay informed about the ongoing initiatives driving sustainable growth.