The United Arab Emirates has strengthened its position in 2025 as one of the world’s fastest expanding economies, supported by strong performance in non oil sectors, rising investment inflows and proactive economic policies.
Official data shows that the UAE’s non oil foreign trade increased by 24.5 percent in the first half of 2025, reaching AED 1.7 trillion. This growth rate is almost fourteen times faster than the average pace of global trade, highlighting the effectiveness of the country’s diversification strategy and its growing role as a global trade hub.
Real gross domestic product recorded year on year growth of 4.2 percent during the first six months of the year, reaching AED 929 billion. Economic activity outside the hydrocarbon sector expanded by 5.7 percent and accounted for more than three quarters of total economic output, reflecting the reduced reliance on oil revenues.
International organisations have acknowledged the UAE’s strong economic momentum. The International Monetary Fund raised its growth forecast for the country in 2025 to 4.8 percent, confirming its status as one of the leading performing economies in the region. At the same time, major credit rating agencies including Fitch, Moody’s and S and P Global reaffirmed the UAE’s high sovereign ratings, citing sound fiscal management and resilient economic fundamentals.
Foreign direct investment continues to play a major role in economic expansion. The United Nations Conference on Trade and Development World Investment Report 2025 ranked the UAE tenth globally for foreign investment inflows in 2024, underlining strong international investor confidence.
The banking sector also demonstrated solid performance, with total banking assets rising to AED 5.19 trillion and total credit reaching AED 2.47 trillion by the end of September 2025. In support of inclusive growth, the Central Bank of the UAE introduced a National Financial Inclusion Strategy covering the period from 2026 to 2030, aimed at expanding access to financial services across society.
Fiscal policy remains supportive of growth. The federal budget for 2026 has been approved at AED 92.4 billion, marking the largest budget allocation in the country’s history and reinforcing the government’s commitment to long term development priorities.
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