UAE cements position among world’s fastest-growing economies in 2025

The United Arab Emirates consolidated its position in 2025 as one of the world’s fastest-growing economies, driven by strong non-oil sectors, robust foreign and domestic investment, pro-business regulation and a flexible regulatory environment.

Non-oil foreign trade rose 24.5 per cent in the first half of 2025 to Dhs1.7 trillion, around 14 times the global growth rate.

The UN Conference on Trade and Development (UNCTAD) World Investment Report 2025 ranked the UAE 10th globally for inbound foreign direct investment (FDI) in 2024, at Dhs167.6 billion.

The International Monetary Fund raised its 2025 growth forecast for the UAE to 4.8 per cent, while Fitch, Moody’s and S&P Global affirmed the country’s sovereign ratings, citing strong economic performance and sound fiscal policy.

The Central Bank of the UAE (CBUAE) data showed that gross banks’ assets increased to Dhs5,199.9 billion at the end of September 2025, with gross credit increased to Dhs2,478.8 billion during the same period.

CBUAE also launched the UAE National Financial Inclusion Strategy 2026–2030 to expand access to financial services and strengthen financial stability.

Real GDP grew 4.2 per cent year-on-year to Dhs929 billion in H1 2025. Non-oil GDP rose 5.7 percent to Dhs720 billion, accounting for 77.5 per cent of real GDP, while oil activity contributed 22.5 per cent.

The UAE approved the Federal Budget for 2026 at AED92.4 billion, the largest on record.

In the industry, the Ministry of Industry and Advanced Technology signed five memoranda of understanding with national banks to provide more than Dhs40 billion in financing. The fourth edition of the “Make it in the Emirates” platform concluded with industrial projects exceeding Dhs11 billion and record attendance of more than 122,000 visitors.

The Cabinet approved the National Investment Strategy 2031, which includes 12 programmes and 30 initiatives aimed at raising annual foreign investment inflows from Dhs112 billion in 2023 to Dhs240 billion by 2031 and grow the UAE’s total foreign investment stock from Dhs800 billion to Dhs2.2 trillion.

The Cabinet also approved the establishment of the National Investment Fund, with an initial capital of Dhs36.7 billion and approved the UAE Strategy for Islamic Finance and Halal Industry to strengthen the country’s position as a global hub.

In 2025, the country launched the "UAE Future 50" initiative across 15 sectors and a national campaign positioning the country as a global capital for entrepreneurs, targeting the training and incubation of 10,000 entrepreneurs.

More than 220,000 new companies were registered between January and end-November, alongside over 36,000 new trademarks, up 48.2 per cent from a year earlier.

The UAE also strengthened its role as a global trade gateway through expanded comprehensive economic partnership agreements, the launch of the "UAE Global Centre of Trade" programme targeting the world’s top 1,000 international trading companies and introduce a digital gateway that connects thousands of UAE exporters to global markets.

By the end of September, the UAE had 402,311 registered national and international trademarks. Nearly 20,000 trademarks were registered in the first half of 2025, up 129 percent from a year earlier.

WAM