Solid growth driven by economic diversification
The first quarter of 2025 confirms the strong performance of the United Arab Emirates’ economy. Gross domestic product reached 455 billion AED, that is to say, a an increase of +3.9 % compared with the first quarter of 2024. This growth illustrates the country’s resilience and its ability to maintain sustained growth against a backdrop of global economic uncertainty.
Even more significantly, the non-oil sectors are now emerging as the real driving forces behind the national economy. They are recording growth of +5,3 % and represent 77.3 % of GDP, an all-time high for the country. This structural transformation confirms the effectiveness of the diversification policies pursued over the past several years and the Emirates’ ambition to build a sustainable economic model that is less dependent on fluctuations in the energy market.
The booming industry
Among the growth sectors, the’industry has delivered a remarkable performance, with growth of +7.7 % in the first quarter. This dynamism is based on the development of strategic clusters in the fields of advanced petrochemicals, metallurgy, the agri-food industry and construction materials.
Industrial free zones, such as KIZAD in Abu Dhabi or JAFZA in Dubai, play a key role in this growth. They attract new international investors thanks to modern infrastructure, an attractive tax regime and global logistics links. The industry is gradually becoming a pillar of diversification, capable of generating skilled jobs and boosting non-oil exports.
The finance sector reaffirms its strategic role
The sector financial is increasing by +7 %, cementing the Emirates’ position as a major regional hub for banking, investment and fintech. Dubai and Abu Dhabi are now home to hundreds of international financial institutions, drawn by a clear regulatory framework, advanced digital infrastructure and political stability that reassures investors.
The local financial markets have also enjoyed strong momentum, buoyed by initial public offerings by strategic companies and by the growing confidence of institutional investors. This rise of the UAE’s financial sector is part of the long-term vision to establish the Emirates as a a key hub linking Asia, Europe and Africa.
The property sector remains a key driver
The sector property continues to grow, with an increase of +6.6 % in the first quarter of 2025. Driven by consistently strong local and international demand, it is benefiting both from population growth and the steady influx of wealthy foreign investors.
The record figures recorded in Dubai and Abu Dhabi reflect this momentum. Sales of high-end flats and villas are reaching new heights, whilst land and commercial properties are attracting growing interest. Property thus remains a safe haven and a mainstay of the economy, contributing to the Emirates’ overall appeal as an investment destination.
A successful structural transformation
The growth of the non-oil sectors is no coincidence. It reflects the ongoing efforts made as part of the Emirates Vision 2031 and the programme Net Zero 2050, which aim to strengthen economic sustainability, attract international talent and foster innovation.
Investments in renewable energy, the digital technologies, the’artificial intelligence and the green logistics are driving this transformation. The Emirates are thus demonstrating their determination to establish themselves as a post-oil economy, capable of combining prosperity, sustainability and innovation.
Conclusion: sustainable and diversified growth
With growth of +3.9 1Q3Q in the first quarter of 2025 and a contribution from the non-oil sectors amounting to 77.3 % of GDP, the United Arab Emirates is demonstrating that its diversification-based economic model is working to the full. Industry, finance and property are exemplifying this transformation by consolidating their roles as drivers of growth.
This development puts the country on a sound path, enabling it to withstand fluctuations in the energy market whilst reaffirming its status as global economic hub. The Emirates have reaffirmed their ambition to become a regional and international model of sustainable, resilient and forward-looking growth.
