UAE growth outpaces global peers as economy gains momentum in 2025

UAE non-oil trade up 24.5%, FDI at Dh167 billion in 2025 growth spurt

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Nivetha Dayanand, Assistant Business Editor
An view of Dubai skyline.
An view of Dubai skyline.
AFP

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

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.

Nivetha Dayanand
Nivetha DayanandAssistant Business Editor
Nivetha Dayanand is Assistant Business Editor at Gulf News, covering aviation, financial markets and commodities. A business and financial journalist with a strong interest in multimedia storytelling, she regularly takes complex financial and economic subjects beyond the written word, producing explainer videos that make them easier for a wider audience to understand. Nivetha has interviewed senior policymakers, business leaders and global financial figures both on and off camera. Her past guests include UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri, Khaled bin Alwaleed Al Saud, a member of the House of Saud and the founder and CEO of KBW Ventures, Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund and Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu. She has also hosted and moderated panels, conferences and awards shows, bringing her newsroom experience to live conversations on business, finance and the economy. An Erasmus Mundus journalism alum, Nivetha is drawn to stories that affect people directly and to reporting that gives a platform to voices that might otherwise go unheard. She was among the first journalists to speak to Petrofac employees in the UAE about unpaid salaries, broke the news of the planned demolition of Dubai’s well-known “Toyota Building”, and helped set the record straight on widely circulated claims that a giant replica of the Moon was coming to Dubai. More recently, her exclusive interview with EDGE Group CEO Hamad Al Marar revealed how the UAE-based defence group deployed its systems along the country’s shore border and established a geofence around the UAE within 48 hours of the February 28 escalation. Prior to joining Gulf News, Nivetha worked at ITP Media, where she helped launch Finance Middle East, a new publication covering the region’s financial sector. Her role spanned reporting and editing, video production, interviews and events. Across print, digital, and video, she focuses on finding the people behind business stories and explaining why those stories matter to the audience reading or watching them.
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