UAE's Gross Domestic Product
The UAE delivered strong, broad-based economic growth in 2025, with real GDP expanding by an estimated 5.4 percent, supported by above-trend performance in both oil and non-oil sectors. Oil GDP grew by around 5 percent following higher production under revised OPEC+ policies, while non-oil GDP rose by approximately 5.5 percent, driven by population growth, solid domestic demand, infrastructure investment, and expansion in services and technology. Looking ahead, growth is forecast to moderate slightly to around 5.0 percent in 2026, remaining close to potential and well above global averages, underscoring the UAE’s economic resilience.
Despite ongoing diversification, oil remains economically significant, accounting for roughly 25 percent of GDP, down from over 30 percent in 2013, and continuing to influence headline growth and fiscal capacity. Oil GDP growth is expected to ease to around 4 percent in 2026 as production gains slow, though ongoing upstream investment and rising capacity targets provide upside potential and continued fiscal support. At the same time, the non-oil economy is set to remain the primary growth engine, with non-oil GDP projected to expand by about 5.3 percent, supported by strong consumption, infrastructure spending, and inflows of foreign businesses and professionals, with particularly strong momentum in Abu Dhabi.
Several sectors are emerging as major drivers of expansion. Financial services are benefiting from strong bank liquidity, rising credit growth, and Dubai’s growing role as a regional financial hub, including fintech and digital assets. Construction and real estate remain robust, underpinned by mega-projects, transport and renewable energy infrastructure, and sustained population growth, while tourism and hospitality continue their strong recovery, supported by global connectivity, new cultural and entertainment attractions, and major events, positioning tourism as an increasingly important contributor to GDP.
Healthcare, life sciences, and trade and logistics are reinforcing the UAE’s long-term growth model. Rising healthcare spending, medical tourism, pharmaceutical manufacturing, and health technology initiatives are transforming the sector into a global contender. Meanwhile, continued investment in ports, free zones, rail, air cargo, and e-commerce logistics is strengthening the UAE’s role as a global trade and distribution hub. Together, these trends reflect an economy that is not only growing strongly but also deepening its diversification, competitiveness, and strategic importance in global trade and investment flows.
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Foreign Direct Investment trends
The UAE continues to consolidate its position as a global FDI leader, securing record inflows of approximately USD 45–46 billion in 2024, representing a near 50 percent year-on-year increase despite an 11 percent decline in global FDI. This performance placed the UAE among the world’s top FDI destinations, captured more than half of total inflows into the Middle East, and ranked the country second globally for new greenfield projects, underscoring its growing relevance in an increasingly fragmented global economy.
FDI inflows are broad-based and increasingly diversified. Wholesale and retail trade, real estate, and financial services remain core recipients, while investment is expanding rapidly into technology, digital infrastructure, renewable energy, healthcare, education, logistics, and hospitality. Real estate continues to act as a key entry point for capital, supported by strong price growth in prime markets, rising inflows of high-net-worth individuals, and policy initiatives such as the expanded Golden Visa program that links long-term residency to investment.
The UAE’s FDI strength is underpinned by structural advantages, including 100 percent foreign ownership in most sectors, a highly competitive tax environment, streamlined licensing, political stability, and world-class infrastructure. Its strategic location and emphasis on connectivity—open skies, ports, and trade corridors—reinforce its role as a global business and logistics hub, while high living standards further enhance its appeal to international investors and talent.
Looking ahead, the FDI outlook remains positive as large-scale infrastructure projects, digital transformation, and sustainability initiatives continue to attract global capital. While regional competition is intensifying, the UAE’s policy agility, diversified investment ecosystem, and track record of delivering complex projects position it as a preferred destination for investors seeking stability, resilience, and long-term growth opportunities.
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Trade trends
The UAE recorded exceptional trade performance in the first half of 2025, reinforcing its position as a leading global trading hub. Non-oil foreign trade reached approximately AED 1.73 trillion, growing 24 percent year on year and more than doubling levels seen in 2021. This marked one of the strongest expansion periods on record, reflecting sustained momentum in trade volumes and the UAE’s role as a reliable gateway for global commerce.
A key driver of this performance has been the Comprehensive Economic Partnership Agreement (CEPA) programme, launched in 2021. By mid-2025, the UAE had concluded 28 CEPAs, with 10 in force, providing preferential access to markets representing nearly three billion consumers. Non-oil exports benefited significantly, rising to AED 369.5 billion in the first half of 2025, up nearly 45 percent year on year, and accounting for a record 21.4 percent of total non-oil trade. CEPA partners contributed almost a quarter of non-oil exports, with particularly strong growth in trade with India, Türkiye, and Switzerland.
Trade growth was broad-based across exports, re-exports, and imports. Re-exports reached AED 389 billion, supported by the UAE’s role as a regional distribution hub, while non-oil imports rose to AED 969 billion, reflecting strong domestic demand and re-export activity. Trade with the UAE’s top partners continued to expand rapidly, including notable gains with India, China, Saudi Arabia, Türkiye, the United States, and France, underscoring the country’s diversified trade relationships.
Underlying this performance is the UAE’s continued investment in trade-enabling infrastructure and logistics. Major ports, free zones, air cargo hubs, and projects such as Etihad Rail are enhancing connectivity and reducing trade costs, while growth in e-commerce and global supply-chain diversification further strengthens the UAE’s position. Together, these factors have enabled the country to translate policy initiatives and infrastructure investment into record trade outcomes in 2025.
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