UAE growth outpaces global peers as economy gains momentum in 2025

Dubai: The UAE solidified its status as one of the world's fastest-growing economies in 2025, propelled by booming non-oil sectors, record foreign direct investment and agile pro-business policies. Non-oil foreign trade jumped 24.5% in the first half of the year to Dh1.7 trillion, outpacing global rates by a factor of 14.

Real GDP expanded 4.2% year-on-year to Dh929 billion in H1 2025, with non-oil GDP rising 5.7% to Dh720 billion and comprising 77.5% of the total. The IMF lifted its full-year growth forecast to 4.8%, while Fitch, Moody’s and S&P affirmed sovereign ratings on robust performance and fiscal strength.

FDI and banking assets hit records

The UNCTAD World Investment Report 2025 placed the UAE 10th globally for inbound FDI at Dh167.6 billion in 2024. Central Bank data showed gross bank assets climbing to Dh5.19 trillion by end-September, with gross credit at Dh2.47 trillion. The bank also unveiled the National Financial Inclusion Strategy 2026-2030 to broaden services and bolster stability.

Record budget fuels expansion

The federal budget for 2026 hit Dh92.4 billion, the largest ever. The Ministry of Industry and Advanced Technology inked five MoUs with national banks for over Dh40 billion in industrial financing. The "Make it in the Emirates" platform wrapped its fourth edition with Dh11 billion in projects and 122,000 visitors.

Strategies target trillion-scale inflows

The Cabinet greenlit the National Investment Strategy 2031, with 12 programmes and 30 initiatives to lift annual FDI from Dh112 billion in 2023 to Dh240 billion by 2031, growing total foreign investment stock from Dh800 billion to Dh2.2 trillion. A National Investment Fund launched with Dh36.7 billion initial capital, alongside the UAE Strategy for Islamic Finance and Halal Industry.

Entrepreneur and trade push accelerates

The "UAE Future 50" initiative spanned 15 sectors, with a campaign to train 10,000 entrepreneurs and position the UAE as a global startup hub. Over 220,000 new companies registered January to November, and trademarks surged 48.2% year-on-year to more than 36,000. By September end, 402,311 trademarks were active, with nearly 20,000 added in H1 alone, up 129%.

Expanded economic partnerships, the "UAE Global Centre of Trade" targeting top 1,000 traders and a digital exporter gateway cemented the UAE's trade gateway role.

- With inputs from WAM.