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08.09.2025

UAE Economy to Grow 4.5% in 2025, Leading Region

The UAE’s economy is anticipated to grow by 4.5% in 2025, surpassing other regional counterparts, according to the UAE Minister of Economy and Tourism.

Abdulla bin Touq Al Marri addressed participants at Abu Dhabi’s Hili Forum, highlighting that sound fiscal policies, robust non-oil diversification, and structural reforms are driving growth.

The Central Bank predicts a similar growth rate of 4.4%, supported by strong hydrocarbons and advancements in sectors like industrial manufacturing, tourism, transport, and the digital economy.

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Non-oil trade hit a record Dh370 billion in the first half of 2025, boosting diversification. Foreign direct investment inflows surged nearly 50% last year to $45.6 billion, placing the UAE among the world’s top ten FDI destinations.

“Our economy is resilient, dynamic, and adaptable to global challenges,” Al Marri stated. He pointed out that from 2021 to 2024, the UAE achieved an average annual growth of 4.9%, with a 6.4% increase in non-oil GDP.

The minister emphasized national projects, such as Operation 300 Billion and the “Make it in the Emirates” initiative, which aim to raise the industrial sector’s GDP contribution from Dh133 billion to Dh300 billion by 2031.

Al Marri also stressed the UAE’s climate and sustainability goals, highlighting renewable energy initiatives, the Barakah nuclear plant, and the Mohammed bin Rashid Solar Park. He stated that economic diplomacy is broadening to encompass trade, investment, technology, artificial intelligence, tourism, and culture.

“The UAE adopts a comprehensive diplomatic approach that forges economic connections with all partners and establishes an appealing investment environment,” Al Marri concluded.