The UAE economy Q1 2025 recorded strong momentum with real GDP expanding 3.9% year-on-year to $123.8 billion (AED 455 billion), according to state news agency WAM. Growth was primarily fueled by a 5.3% surge in non-oil activities, pushing their contribution to a record 77.3% of real GDP.
Non-Oil Growth Drivers
Non-oil GDP reached $95.8 billion (AED 352 billion). Manufacturing led with 7.7% growth, followed by finance, insurance, and construction at 7% each. Real estate grew 6.6%, while trade expanded by 3%.
In terms of contribution, trade accounted for 15.6% of non-oil GDP, finance and insurance made up 14.6%, and manufacturing contributed 13.4%.
Minister of Economy and Tourism Abdullah bin Touq Al Marri said the results highlight the resilience of the national economy and the growing confidence of global investors. He emphasized that the performance aligns with the We the Emirates 2031 vision, which aims to boost GDP to $816.7 billion (AED 3 trillion) within the next decade.
PMI Outlook
Business conditions also showed improvement in August. The S&P Global UAE Purchasing Managers’ Index (PMI) rose to 53.3, up from July’s 49-month low of 52.9. The increase was driven by faster growth in output, higher sales, and stronger local market activity. The survey also indicated that expansion was the quickest in six months, surpassing the long-run trend.
Economic Resilience
The performance of the UAE economy Q1 2025 reflects the government’s success in diversifying away from oil, with key sectors such as manufacturing, finance, and real estate driving momentum. With strong investor confidence and expanding domestic markets, the UAE is positioned to sustain its growth path despite global uncertainties.
