The UAE’s economy maintained strong momentum in the first quarter of 2025, with real GDP rising 3.9% year-on-year to Dh455 billion, according to preliminary estimates from the Federal Competitiveness and Statistics Centre (FCSC). Non-oil GDP led the expansion, growing 5.3% to Dh352 billion, while oil-related activities accounted for 22.7% of total GDP. Non-oil contributions now represent 77.3% of GDP, a significant increase from 71.3% in 2020, reflecting the country’s successful diversification strategy under the We the UAE 2031 vision.
Manufacturing emerged as the fastest-growing sector with 7.7% growth, followed by finance and insurance and construction at 7% each. Real estate activities rose 6.6% and trade by 3%. Trade contributed the most to non-oil GDP at 15.6%, followed by finance and insurance (14.6%), manufacturing (13.4%), construction (12%), and real estate (7.4%). Officials highlighted that the results demonstrate the UAE’s resilience and its push toward a knowledge- and innovation-driven economy.
Foreign trade benefited from the UAE’s 28 Comprehensive Economic Partnership Agreements (Cepas), with significant growth in the first quarter of 2025: 33% with India, 41% with Turkey, 29% with the US, and 15% with China. Abu Dhabi alone recorded a 34.7% increase in non-oil foreign trade, reaching Dh195.4 billion, underscoring its strategic role as a logistics and trade hub. Negotiations for a UAE-EU free trade agreement have also begun, aiming to enhance trade in goods, services, and strategic sectors such as renewable energy, healthcare, and AI.
Strategic investments further fueled growth, with 63 mergers and acquisitions worth over $20 billion in Q1 2025, the highest in the MENA region. Key developments include Group 42’s stake in Khazna Data Centres, Etihad Airways’ $14.5 billion aircraft deal with Boeing and GE Aerospace, and a €1 billion agreement for renewable energy projects with Italy and Albania. These initiatives reinforce the UAE’s trajectory toward sustainable, diversified, and innovation-driven growth.
