UAE Achieves Strong Economic Growth and Historic Surge in Non-Oil Foreign Trade in 2025

Dubai - EcoPulse24

The United Arab Emirates achieved record economic milestones in 2025, supported by outstanding performance in non-oil foreign trade and strong GDP growth at both the national and emirate levels, according to official data from the UAE News Agency and Dubai Government Media Office.

Historic Figures in Non-Oil Foreign Trade

UAE’s non-oil foreign trade reached AED 3.8 trillion in 2025, a 26% increase over the previous year, outpacing the global trade growth rate of around 7% by more than threefold.

According to the Ministry of Foreign Trade, non-oil trade in the first nine months of 2025 amounted to AED 2.67 trillion, up 24.6% year-on-year. For the first time, quarterly trade exceeded AED 1 trillion in Q3 (July–September).

Unprecedented Export Surge

Non-oil exports hit AED 813 billion in 2025, marking a record 45% increase over 2024 and surpassing targets set in the “We the UAE 2031” vision.

The contribution of non-oil exports rose to 21.4% of total non-oil foreign trade, up from 18.7% in 2024, highlighting a qualitative shift in the UAE’s economic structure.

Economic Partnership Agreements Yield Results

Trade with Comprehensive Economic Partnership Agreement (CEPA) partners grew exceptionally: Chile (up 85%), Australia and Jordan (37% each), Malaysia (22%), and India and Turkey (15% each), with Indonesia at 12%.

Thani Al Zeyoudi, Minister of State for Foreign Trade, noted that all indicators show non-oil foreign trade is on the right track, projecting it will reach AED 4 trillion within two years - four years ahead of the 2031 target.

Dubai’s GDP Maintains Growth Momentum

Dubai’s GDP for the first nine months of 2025 was AED 355 billion, a 4.7% increase year-on-year. Q3 GDP reached AED 113.8 billion, up 5.3%, while H1 GDP was AED 241 billion, a 4.4% rise.

Leading Growth Sectors

Three main sectors led Dubai’s growth:

Healthcare and Social Work: Achieved the highest growth at 20% in H1 2025, contributing 1.4% to Dubai’s GDP.

Construction: Grew by 8.5%, contributing 6.7% to GDP.

Finance and Insurance: Expanded by 6.7%, accounting for 12.5% of GDP (AED 30.2 billion).

Real estate activities grew 7% in H1, making up 8.2% of GDP (AED 19.8 billion), driven by a 40% surge in property sales.

Tourism Continues Strong Performance

Dubai welcomed 9.88 million international visitors in H1 2025, up 6% year-on-year, boosting accommodation and food services by 4.9% to AED 8.7 billion.

Positive Outlook

Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum commented, “Dubai does not merely keep pace with growth; it creates it, guided by the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum and a team driven by faith, ambition, and determination.”

Abdulla bin Touq Al Marri, Minister of Economy and Tourism, stated that the UAE’s real GDP grew by 4.2% in H1 2025 to AED 929 billion, while the IMF raised its 2025 UAE growth forecast to 5.1%.

These indicators confirm the UAE’s and Dubai’s sustained economic momentum and reinforce their status as leading global trade and economic centers, in line with the D33 economic agenda to double Dubai’s economy and place it among the top three global economic cities by 2033.

Dubai’s economy continued steady expansion, with Q3 2025 GDP at AED 113.8 billion, up 5.3% year-on-year, and nine-month GDP at AED 355 billion, up 4.7%. Healthcare, construction, and finance/insurance were the top growth sectors, underscoring the diversity of growth drivers.

These results align with Dubai’s D33 economic agenda, focusing on sustainable growth, diversification, and solidifying Dubai and the UAE as global trade and investment hubs.

Structural Shift: From Re-Export Hub to Local Manufacturing

Data reveals a strategic transformation in the UAE’s economic structure: non-oil exports jumped 45% to AED 813 billion, compared to more modest re-export growth. This indicates the UAE is evolving from a re-export logistics hub to a genuine manufacturing and production base. The increase in export contribution from 18.7% to 21.4% of total trade in one year signals successful diversification and attraction of high-value industries, positioning the UAE alongside advanced industrial economies.

Partnership Agreements: Economic Diplomacy with Tangible Returns

Exceptional growth with CEPA partners (85% with Chile, 37% with Australia and Jordan) demonstrates the effectiveness of UAE economic diplomacy. With global trade growing at 7%, the UAE’s 26% growth - nearly four times the global average - shows these agreements not only open new markets but also create preferential environments for UAE exporters. Achieving the AED 4 trillion target four years early highlights a high return on investment from these agreements.

Dubai: The Region’s Non-Oil Growth Engine

Dubai accounts for about 25% of the UAE’s real GDP, with over 95% of its economy non-oil-based, making it a unique diversification model in the Gulf. Rapid growth in healthcare (20%), construction (8.5%), and finance (6.7%) reflects a healthy balance between high-value services and infrastructure. A 40% jump in real estate sales in H1 2025 signals sustained market confidence and significant capital inflows. Welcoming 9.88 million international visitors in six months puts Dubai on track to surpass 20 million annual visitors, cementing its status as a top global destination.

Successes and Challenges: Maintaining Momentum in a Volatile Global Environment

Despite exceptional performance, sustaining high growth faces challenges amid expected global economic slowdown and geopolitical tensions. Achieving 26% trade growth against a global 7% average means the UAE is gaining market share from competitors, potentially intensifying competition. The real challenge is shifting from quantitative to qualitative growth - boosting local value-added per transaction. With Dubai aiming to double its economy by 2033 under the D33 agenda, sustaining current growth rates for eight years will depend on the UAE’s ability to attract future industries (AI, biotech, clean energy), a strategy the country has already initiated with clear policies.