The UAE’s economy is expected to expand by 4.9% in 2025, up from a previous forecast of 4.4%, according to the Central Bank of the UAE. This growth is attributed to increased oil production aligned with OPEC+ quotas and robust performance in non-oil sectors.
📊 Key Highlights
- Oil Sector Growth: The hydrocarbon sector is projected to grow by 5.8% in 2025, supported by higher oil output.
- Non-Oil Sector Expansion: The non-oil economy, which constitutes over 77% of the UAE’s GDP, is forecasted to grow by 4.5% in 2025, driven by investments in manufacturing, finance, construction, and real estate.
- Q1 Performance: In the first quarter of 2025, the economy grew by 3.9% year-on-year, with non-oil sectors rising by 5.3%.
🏗️ Sectoral Drivers
- Manufacturing: Continued investment in industrial capabilities is boosting output.
- Finance: Strong performance in banking and financial services is contributing to overall growth.
- Construction & Real Estate: Ongoing infrastructure projects and a buoyant real estate market are supporting economic activity.
📈 Outlook
The UAE’s diversified economy, strategic investments, and proactive government policies are positioning it for sustained growth in 2025 and beyond. The focus on both oil and non-oil sectors ensures a balanced and resilient economic trajectory.
