The UAE economy Q1 2025 recorded a solid 3.9% year-on-year growth, reaching $123.8 billion (AED 455 billion), according to state news agency WAM. The expansion was powered by a 5.3% surge in non-oil GDP, which climbed to $95.8 billion (AED 352 billion), marking a stronger role for diversified economic activities. Oil accounted for just 22.7% of GDP in the period.
Sector Performance
Manufacturing stood out as the fastest-growing sector, expanding 7.7% in the quarter. Finance, insurance, and construction followed with 7% growth each. Real estate rose 6.6%, while trade grew 3%, maintaining its role as the largest non-oil contributor.
In terms of contribution to non-oil GDP:
- Trade led with 15.6%
- Finance and insurance followed with 14.6%
- Manufacturing contributed 13.4%
Minister of Economy and Tourism Abdullah bin Touq Al Marri praised the results, highlighting the resilience of the UAE economy and growing investor confidence. He noted that non-oil activities now make up 77.3% of real GDP, a record high. The performance aligns with the “We the Emirates 2031” vision, which targets GDP expansion to $816.7 billion (AED 3 trillion) by the next decade.
August Business Activity
The S&P Global UAE Purchasing Managers’ Index (PMI) improved to 53.3 in August, up from July’s 49-month low of 52.9. The rise reflects stronger output growth, improved sales, and continued project activity. Panellists noted that demand in local markets helped accelerate business momentum, with activity growth reaching its fastest pace in six months.
The UAE economy Q1 2025 results reinforce the country’s successful diversification strategy. Strong non-oil growth in manufacturing, finance, and real estate demonstrates the UAE’s capacity to maintain momentum even amid global market fluctuations.
