UAE real GDP grows 3.9% in first quarter of 2025, driven by non-oil sectors
The UAE’s economy recorded robust growth in the first quarter of 2025, with real Gross Domestic Product (GDP) rising by 3.9% to AED 455 billion compared to the same period last year, according to preliminary estimates released by the Federal Competitiveness and Statistics Centre.
Non-oil GDP grew by 5.3%, reaching AED 352 billion, while oil-related activities contributed 22.7% to total GDP during the quarter. The share of non-oil sectors in real GDP rose to a record 77.3%, the highest in the nation’s history, reflecting the success of economic diversification initiatives.
His Excellency Abdulla bin Touq Al Marri, Minister of Economy and Tourism, said the latest results reaffirm the resilience of the UAE’s economy and the effectiveness of its comprehensive development model. He noted that the strong performance reflects investor confidence in the country’s business environment and progressive legislative framework, aligned with the We the UAE 2031 vision that targets raising GDP to AED 3 trillion by the next decade.
Her Excellency Hanan Mansoor Ahli, Director of the Federal Competitiveness and Statistics Centre, highlighted that the growth demonstrates the government’s success in developing sustainable economic sectors. She emphasized that the expansion of non-oil GDP by more than 5% illustrates the UAE’s strategy to build a diversified economy powered by technology, innovation, and entrepreneurship.
Fastest-growing sectors
Manufacturing was the strongest-performing sector in Q1 2025, growing 7.7%. Finance and insurance, as well as construction, both expanded by 7.0%, while real estate activities grew by 6.6% and trade activities by 3.0%.
In terms of contribution to non-oil GDP, trade led with 15.6%, followed by finance and insurance at 14.6%, manufacturing at 13.4%, construction at 12.0%, and real estate at 7.4%.
The figures reaffirm the UAE’s momentum toward economic diversification, strengthening its position as a global hub for sustainable growth and innovation.
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