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, underpinned by strong non-oil sector performance, robust foreign and domestic investment, pro-business regulations, and a flexible regulatory environment.

Non-oil foreign trade surged 24.5 per cent in the first half of 2025 to AED1.7 trillion, growing at nearly 14 times the global average rate. Reflecting investor confidence, the UNCTAD World Investment Report 2025 ranked the UAE 10th globally for inbound foreign direct investment in 2024, with inflows reaching AED167.6 billion.

International institutions reinforced this outlook, with the International Monetary Fund raising its 2025 growth forecast for the UAE to 4.8 per cent. Meanwhile, Fitch, Moody’s and S&P Global affirmed the country’s sovereign credit ratings, citing strong economic fundamentals and prudent fiscal management.

Central Bank of the UAE (CBUAE) data showed gross banking assets rising to AED5,199.9 billion by the end of September 2025, while gross credit reached AED2,478.8 billion. The CBUAE also launched the UAE National Financial Inclusion Strategy 2026–2030, aimed at expanding access to financial services and reinforcing financial stability.

Real GDP grew 4.2 per cent year-on-year to AED929 billion in the first half of 2025. Non-oil GDP expanded 5.7 per cent to AED720 billion, accounting for 77.5 per cent of real GDP, while oil activities contributed 22.5 per cent.

Fiscal strength was further underscored by the approval of the UAE Federal Budget for 2026, valued at AED92.4 billion, the largest in the country’s history. On the industrial front, the Ministry of Industry and Advanced Technology signed five MoUs with national banks, unlocking more than AED40 billion in financing. The fourth edition of “Make it in the Emirates” concluded with industrial projects exceeding AED11 billion and record attendance of over 122,000 visitors.

The Cabinet approved the National Investment Strategy 2031, comprising 12 programmes and 30 initiatives aimed at increasing annual foreign investment inflows from AED112 billion in 2023 to AED240 billion by 2031, and expanding total foreign investment stock to AED2.2 trillion. It also endorsed the establishment of a National Investment Fund with initial capital of AED36.7 billion, alongside the UAE Strategy for Islamic Finance and the Halal Industry to strengthen the country’s global positioning.

In 2025, the UAE launched the “UAE Future 50” initiative across 15 sectors, alongside a national entrepreneurship campaign targeting the training and incubation of 10,000 entrepreneurs. Between January and end-November, more than 220,000 new companies were registered, while 36,000 new trademarks were issued up 48.2 per cent year-on-year.

The UAE also reinforced 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 trading companies, and a digital gateway linking UAE exporters to global markets. By the end of September, total registered trademarks reached 402,311, with nearly 20,000 trademarks registered in the first half of 2025 alone an increase of 129 per cent compared to the previous year.