UAE Economic Growth in 2025
- 19.12.2025
- Posted by: Uwe Hohmann
- Categories: Dubai, Middle East
The UAE has reinforced its standing as one of the fastest-growing economies globally in 2025. Strong performance across non-oil sectors, sustained foreign investment, and a business-friendly regulatory environment continue to attract entrepreneurs and investors to the country.
For business owners operating in or considering the UAE market, these developments show continued opportunity and stability.
Non-Oil Trade and Foreign Investment
Non-oil foreign trade increased by 24.5 percent in the first half of 2025, reaching AED 1.7 trillion. This growth rate is approximately 14 times the global average, reflecting the UAE’s expanding role in international commerce.
The UNCTAD (United Nations Conference on Trade and Development) World Investment Report 2025 placed the UAE 10th globally for inbound FDI (Foreign Direct Investment) in 2024, with inflows totalling AED 167.6 billion. This ranking confirms the country’s appeal as an investment destination.
Economic Forecasts and Credit Ratings
The IMF (International Monetary Fund) revised its 2025 growth forecast for the UAE upward to 4.8 percent. At the same time, all three major rating agencies, Fitch, Moody’s, and S&P Global, affirmed the country’s sovereign ratings, pointing to strong economic fundamentals and responsible fiscal management.
These assessments provide reassurance for businesses planning long-term operations in the UAE.
Banking Sector Strength
Data from the CBUAE (Central Bank of the UAE) shows gross bank assets reached AED 5,199.9 billion by the end of September 2025. Gross credit rose to AED 2,478.8 billion during the same period, indicating healthy lending activity and liquidity in the financial system.
The CBUAE also introduced the UAE National Financial Inclusion Strategy 2026 to 2030, aimed at expanding access to financial services across the population.
GDP Performance
Real GDP (Gross Domestic Product) grew 4.2 percent year-on-year to AED 929 billion in the first half of 2025. Non-oil GDP increased by 5.7 percent to AED 720 billion, now accounting for 77.5 percent of total real GDP. Oil activity contributed the remaining 22.5 percent.
This diversification is significant. It shows the UAE economy is less dependent on oil revenues and more resilient to fluctuations in global energy markets.
Federal Budget and Industrial Investment
The UAE approved the Federal Budget for 2026 at AED 92.4 billion, the largest in the country’s history.
In the industrial sector, the MoIAT (Ministry of Industry and Advanced Technology) signed five memoranda of understanding with national banks to provide more than AED 40 billion in financing for industrial projects.
National Investment Strategy 2031
The Cabinet approved the National Investment Strategy 2031, which includes 12 programmes and 30 initiatives. The strategy aims to increase annual foreign investment inflows from AED 112 billion in 2023 to AED 240 billion by 2031 and grow total foreign investment stock from AED 800 billion to AED 2.2 trillion.
Supporting this, the government established the National Investment Fund with initial capital of AED 36.7 billion.
Entrepreneurship and New Companies Formation
The UAE launched the UAE Future 50 initiative spanning 15 sectors, alongside a national campaign to position the country as a destination for entrepreneurs. The campaign targets the training and incubation of 10,000 entrepreneurs.
Between January and the end of November 2025, more than 220,000 new companies were registered. Over 36,000 new trademarks were filed during this period, a 48.2 percent increase compared to the previous year. 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 alone, up 129 percent from the same period a year earlier.
Expanded Trade Partnerships
The UAE continues to strengthen its position as a global trade gateway through expanded CEPA (Comprehensive Economic Partnership Agreement) deals with key markets. The government launched the UAE Global Centre of Trade programme, targeting the world’s top 1,000 international trading companies. A new digital gateway now connects thousands of UAE exporters directly to global markets.
What This Means for Businesses
For existing and prospective business owners, these figures confirm what many already experience on the ground: the UAE remains a stable, growth-oriented market with strong institutional support for commerce.
Whether you are setting up a new company, expanding operations, or reviewing your compliance and tax obligations, understanding the broader economic context helps inform better decisions.
Comprehensive UAE Business Solutions
Our comprehensive services are designed to support you every step of your business journey in the UAE:
- Company Formation: We guide you through all aspects of setting up your company, whether in a free zone or on the mainland, ensuring you choose the best option for your business.
- Visa and Emirates ID Services: We streamline the process of securing visas and Emirates IDs for you and your employees, allowing you to focus on your business operations.
- Accounting: Our team ensures your business stays compliant with local financial regulations, which is crucial for maintaining good standing in Dubai’s business community.
- Tax: We help manage Dubai’s tax environment, ensuring your business remains compliant while optimizing your tax position.
- Compliance and AML : We help ensure your business remains compliant with UAE laws and regulatory requirements while assisting in the implementation, maintenance, and training of AML (Anti-Money Laundering) procedures in line with national and international standards.
- Business Consulting: Leveraging our deep understanding of Dubai’s market, we provide valuable insights and help you develop effective strategies to succeed.
Visit our services page to learn more about everything we do.
