UAE Economy Set To Grow 4.5% In 2025, Outpacing Regional Peers

The UAE economy is projected to expand by 4.5 per cent in 2025, placing it ahead of all regional peers, said the UAE Minister of Economy and Tourism.

Abdulla bin Touq Al Marri told delegates at Abu Dhabi's Hili Forum that prudent fiscal strategies, strong non-oil diversification, and structural reforms support growth.

The Central Bank has forecast a similar figure of 4.4 per cent, fuelled by hydrocarbon resilience and momentum in sectors such as industrial manufacturing, tourism, transport and the digital economy.

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Non-oil trade reached a record Dh370 billion in the first half of 2025, significantly contributing to diversification. Foreign direct investment inflows also rose nearly 50 per cent last year to $45.6 billion, securing the UAE's place among the world's top ten recipients of FDI.

“Our economy is resilient, dynamic and adaptive in the face of global headwinds,” Al Marri said. He noted that from 2021 to 2024, the UAE recorded an average yearly growth of 4.9 per cent, with non-oil GDP expanding by 6.4 per cent.

The minister highlighted national initiatives, including Operation 300 Billion and the“Make it in the Emirates” campaign, which aim to increase the industrial sector's GDP contribution from Dh133 billion to Dh300 billion by 2031.

Al Marri also underlined the UAE's climate and sustainability agenda, citing renewable energy projects, the Barakah nuclear plant and the Mohammed bin Rashid Solar Park. He said economic diplomacy is expanding to include not only trade and investment but also technology, artificial intelligence, tourism and culture.

“The UAE follows a holistic approach to diplomacy that builds economic bridges with all partners and creates an attractive environment for investment,” Al Marri concluded.

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